Polygon, the second-largest blockchain in terms of NFT sales volume over the past 30 days, has been facing a bearish trend in MATIC’s price chart. In this article, we’ll delve into the recent performance of Polygon’s NFT ecosystem and MATIC’s on-chain indicators.
Polygon’s NFT Performance
During the last month, Polygon (MATIC) ranked second only to Ethereum (ETH) in the NFT ecosystem. However, upon closer inspection, it becomes evident that Polygon’s NFT ecosystem experienced declines in various aspects, although recent developments are worth noting.
- Polygon’s NFT trade count and trade volume spiked on 24 September.
- MATIC’s exchange reserve was on the rise while whales’ confidence dropped.
- Sales volumes for both Ethereum and Polygon decreased by over 41% in the past 30 days.
Polygon’s NFT Ecosystem Metrics
Further examination reveals multiple declines in Polygon’s NFT ecosystem:
- The total number of NFT transactions dropped by more than 50%.
- The number of NFT buyers decreased by 7%.
- NFT volume on marketplaces also declined.
At present, OpenSea commands over 85% of the market share, while Rarible follows with 6.8% of the total Polygon NFT volume.
Despite these setbacks, DappRadar’s data highlights the top Polygon NFT collections:
- Mythical Beings
- OKX NFT Collection
Interestingly, recent data shows signs of improvement, with both NFT trade counts and trade volume in USD spiking on 24 September 2023, indicating a potential resurgence in the NFT market on Polygon.
Polygon’s native token, MATIC, has been under the influence of bears for several weeks, as indicated by its consistently red charts. According to CoinMarketCap, MATIC experienced a decline of over 1% in the past seven days and is currently trading at $0.5147 with a market capitalization exceeding $4.7 billion.
An analysis of MATIC’s on-chain performance reveals:
- MATIC’s exchange reserve is increasing, suggesting investors are selling their holdings.
- The token’s MVRV ratio declined in the previous week.
- Whales’ confidence in MATIC dwindled, evidenced by a slight decrease in supply held by top addresses.