Polygon’s native blockchain network recently witnessed surging growth in non-fungible token (NFT) volume, reaching a peak not seen in the past six months according to data from CryptoSlam.
NFT Sales Surpass $10 Million
Polygon’s NFT volume reached a 6-month peak in December 2023, with daily sales surpassing $10 million. This growth positioned Polygon as the third-largest NFT market on December 6, 2023, behind only Ethereum and Bitcoin.
MATIC Price Increases by Over 3%
The price of Polygon’s native token, MATIC, increased by over 3%, trading at approximately $0.83, likely influenced by the positive NFT sales data.
Flips Solana in Volume
Polygon flipped Solana in NFT sales volume when Solana’s volume dropped to $4.1 million, and Polygon’s jumped 42% to $10 million.
Popular NFT Collections Contribute
Top Polygon NFT collections such as Genesis WildPass, Collect Trump, The Sandbox, and Gas Hero Coupon contributed to the rising trade volume.
January NFT Sales near $40 Million
In January 2024, within just eight days, Polygon’s NFT sales volume neared $40 million.
Concerns over Wash Trading
Despite the high sales volume, concerns arose due to a decrease in unique addresses and transaction count following a peak on Christmas day. The potential issue of wash trading on Polygon was observed, with around $850,000 in wash volume, although this was seen as minor compared to the $10 million in genuine sales volume.
Growing Interest in Layer 2 Scaling
Polygon’s performance indicates growing interest in Ethereum Layer-2 scaling solutions as traders search for more affordable NFT trading options due to high Ethereum gas fees.
MATIC Strength in Bearish Market
MATIC has demonstrated strength in a generally bearish market, with a price increase of over 35% in the past three months, much of which occurred in December amid the NFT volume surge.
Projections for 2024
There are optimistic projections for MATIC and Polygon for 2024, with metaverse and NFT projects likely driving further growth due to the need for scaling solutions.