Polygon’s NFT sales soar to new heights, but stumbling blocks lie ahead

by James · April 22, 2023

Polygon NFT sales started to increase. However, activity on the network decreased.
MATIC token under pressure as prices fell due to lack of interest from new users.

In accordance data as of April 21, it was observed that Polygon’s [MATIC] NFT sales increased dramatically. Compared to NFT markets on other cryptocurrencies, Polygon did relatively well in terms of sales and came second to Ethereum

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Transaction volume on the Polygon network experienced a growth of 19.49% in the past week, resulting in total sales of $15.13 million.

We’ve seen Polygon in the #2 spot over a 24 hour period…

Polygon is now #2 in NFT sales volume in the last 7 days. pic.twitter.com/M22jOzXjZX

— Narb (@NarbTrading) 20 April 2023

More than what the eye can see

However, despite the growing interest in Polygon’s NFTs, overall activity on the Polygon network declined. According to data provided by Artemis, Polygnon’s daily active addresses fell from 435,200 to 294,000 in the past month.

In the same period, the number of transactions made on the Polygon network has also decreased from 2.9 million to 2.4 million.

Source: Artemis

The waning interest in Polygon’s dApps may be one of the factors contributing to the decline in activity. Dapp Radar’s statistics revealed that prominent dApps on the Polygon network, such as Planet IX, faced difficulties in gaining traction.

There was a 31.5% decrease in the number of distinct active wallets on the network in the week ending April 15th. Moreover, the number of transactions on the protocol also fell by 51.96%

Source: Dapp Radar

New developments at Polygon

The initiatives taken by the Polygon development team to improve the protocol may serve as an incentive to attract greater participation from users on the network. In particular, Polygon bridge’s user interface underwent several modifications aimed at improving usability and accessibility.

Such efforts to optimize platform performance and user experience are integral to Polygon’s long-term growth strategy. By implementing changes that promote greater ease of use and accessibility, the network is better positioned to retain its existing user base and potentially attract new users.

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As for the token, MATIC’s prices were observed to drop in recent weeks. Network growth declined during this period, suggesting that new addresses were not interested in the token. The MVRV ratio continued to remain in the negative territory, indicating that many MATIC addresses were not profitable.

If MATIC prices continue to decline, it may indicate that holders decided to sell their holdings at a loss.