The NFT market on the Polygon blockchain network saw significant growth and renewed interest in December 2023, according to data from market trackers CryptoSlam and DappRadar.
Polygon’s daily NFT sales volume rose to nearly $10 million on December 6, the highest single-day sales volume in more than six months, making Polygon the third-largest NFT marketplace after Ethereum and Bitcoin on that day.
MATIC bulls advance amid volume explosion
The increase in NFT trading volume also led to a rise in the price of MATIC. MATIC shares rose more than 3% in the past 24 hours to trade at around $0.83, supported by upbeat Polygon NFT metrics.
Polygon’s rise has also allowed it to surpass Solana in terms of NFT sales volume. The takeover began when Solana NFT volume dropped 17% to $4.1 million in one day, while Polygon saw a 42% increase to $10 million, according to CryptoSlam data.
Popular Polygon NFT products driving growth include Genesis WildPass, Collect Trump, The Sandbox, and Gas Hero Coupon, DappRadar explains. The trading volume of these groups has increased steadily over the past month.
Polygon’s NFT sales volume continues to grow, with nearly $40 million already in January.
There are still concerns despite the return of volume.
However, there are still some areas of concern within the Polygon ecosystem. The number of unique addresses and the number of transactions declined after peaking on Christmas Day, indicating potential vulnerabilities.
The increase in wash circulation is also an issue, with reported wash volume exceeding $850,000 at Polygon. But that pales in comparison to its $10 million organic volume, alleviating some concerns.
Overall, Polygon’s performance indicates renewed investor interest in Ethereum’s Layer 2 scaling solutions. As Ethereum gas fees rise, traders are turning to cheaper alternatives to minting and trading non-fungible tokens (NFTs).
MATIC outperforms the overall bear market
Cryptocurrency markets suffered sharp declines in 2023, affected by macroeconomic headwinds. However, Polygon and Matic showed relative strength amid the carnage.
MATIC has seen its price rise more than 35% in the past three months, with most of that gain coming in December, driven by increased NFT volume and optimism about scaling solutions.
Q4 performance sets MATIC up for an interesting 2024 as investors bet on winners emerging from the cryptocurrency ruins. As NFT and metaverse projects rely on scaling solutions, MATIC and Polygon appear poised for further upside.