When Polygon launches the first NFT collection on zkEVM, it could spur MATIC

by James · May 3, 2023

Polygon’s NFT trade count was down last week, and sales volume was down marginally as well.
MATIC’s price increased, and demand in the derivatives market increased.

Polygon [MATIC] The NFT space has seen a decline over the past seven days. Santiment’s chart revealed that Polygon’s total NFT trading numbers dropped sharply in the past week. In addition, NFT sales volume recorded a marginal decline last week, as evidenced by CRYPTOSLAM’s data.

Source: Sentiment

How much is 1,10,100 MATICs worth today

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A closer look at Polygon’s NFT room

Polygon’s NFT space may witness a boost in the coming days, as the protocol on May 2 announced the launch of the first NFT collection on the zkEVM network. This launch has the potential to increase sales and trading figures.

💌 Dear ‘To Ethereum, with Love’ Soulbound Token holders,

Check your wallet – the first one #zkEVM The Mainnet Beta NFT collection is here and it has landed in your wallet 👀 pic.twitter.com/l0qGO8C6kf

— Polygon (Labs) (@0xPolygonLabs) 2 May 2023

The official tweet mentioned that token IDs #80001+ will receive “Unconstrained”, token IDs #20001-#80000 will receive “Scalability”, and token IDs #1-#20000 will receive “For Mankind” NFTs. With this new launch, growth in Polygon’s NFT ecosystem can be expected as it can attract new users.

zkEVM’s state when launching new NFTs

zkEVM’s performance has been declining for some time now as the key figures were reduced. For example, the number of unique depositors and deposits on zkEVM remained low.

Source: Dune

Gas usage too declined over the past few weeks, suggesting less use of the platform. However, the good news was that after a steep decline, daily transactions on zkEVM showed signs of recovery as the graph recorded an upswing of late.

Source: Polygonscan

MATIC is recovering

MATIC, who have faced the wrath of the bears for quite a few days, also gave hope for brighter days. In accordance CoinMarketCapMATIC’s price increased by more than 2% in the last 24 hours. At the time of writing, it was trading at $0.983 with a market capitalization of over $9 billion.

Is MATIC’s price increase sustainable?

Matic demand in the futures market increased, as evidenced by the green Binance funding rate. Net deposits on exchanges were low compared to the 7-day average. This can be interpreted as lower sales pressure. But apart from these, most calculations were against a price increase.

Source: Sentiment

Realistic or not, here it is MATIC market cap in BTCits terms

MATIC’s network growth slowed, suggesting that fewer new addresses were being used to transfer the token. Hvaler’s interest in Polygon also seemed to have waned.

Another bearish indicator was a rise MATIC‘s supply on exchanges. This was accompanied by a decrease in the token’s supply outside of exchanges, which is a typical bearish signal.