Polygon, the layer 2 solution that has been in the news for quite some time for its increasing number of collaborations, expanded into the NFT space. Despite partnerships in multiple domains for their NFT’s, the Polygon NFT market didn’t see any noteworthy growth.
According to a tweet by Polygon Studios on 21 October, it was stated that an e-sports platform was being built on Polygon. This would help Polygon venture into the e-sports space coupled with other attempts to garner more interest for their NFTs. These steps could possibly help them gain more traction in terms of attracting more users to their NFTs.
However, despite Polygon’s multiple attempts to try and resurrect interests in their NFTs, the results so far have been disappointing.
Furthermore, after looking at Polygon’s NFT performance on the OpenSea platform, it appeared that recovery was still far away. Monthly active traders on the platform continued to decline, and along with that the number of NFT’s sold daily and the overall volume depreciated over the last few months.
The “why” and “what” of it all
One of the reasons for the disinterest in Polygon’s NFT’s could stem from Polygon’s declining social engagements and negative sentiment around the token. According to LunarCrush, a social media analytics website, the number of social engagements around Polygon depreciated by 4.27% over the last week.
Along with that, there was a massive decline in its weighted sentiment. This indicated that over the past seven days, the crypto community had more negative things to say than positive when it came to Polygon.
However despite the negative sentiment, MATIC’s price action showed some positivity. At the time of writing, MATIC was trading at $0.827 and its price had appreciated by 4.07% in the last 24 hours. If the price keeps increasing at this rate it might retest the 0.884 resistance.
The Chaikin Money Flow (CMF) which was at 0.08 was indicating a slightly bullish outlook for MATIC at the time of press. However, the Relative Strength Index (RSI) was at 50 indicating that the momentum was not on either the buyer’s or the seller’s side.
Source : ambcrypto