Polygon’s NFT ecosystem has experienced a decline in sales volume and transactions over the past month. According to data from Today In Polygon, both Ethereum and Polygon saw a decrease of over 41% in their NFT sales volume. This decline raises concerns about the health of the overall NFT ecosystem.
CRYPTOSLAM also reported a drop in Polygon’s total number of NFT transactions and number of buyers by more than 50% and 7% respectively. The NFT volume by marketplaces also lost momentum during this period. At present, OpenSea holds the largest market share with over 85%, followed by Rarible at 6.8% of total Polygon NFT volume.
Despite these declines, there have been signs of growth in Polygon’s NFT ecosystem in recent days. Santiment’s data shows that both the trade counts and trade volume in USD registered a spike on September 24, indicating potential growth.
On the other hand, Polygon’s native token, MATIC, has been under bearish influence for several weeks. Its value has decreased by more than 1% in the last seven days. The token’s on-chain performance also reveals bearish signals, such as an increase in exchange reserves, indicating that investors are selling their holdings. The token’s MVRV ratio has also dropped, further indicating a bearish sentiment. Additionally, whales’ confidence in MATIC has declined as seen in the slight decrease in its supply held by top addresses.
In summary, although Polygon’s NFT ecosystem initially experienced a decline in sales volume and transactions, there have been recent signs of growth. However, MATIC’s performance remains bearish, with its value and investor confidence dropping. Investors should closely monitor these trends to make informed decisions regarding their portfolios.