Will Polygon 2.0 spur the ecosystem's ailing NFTs?

Despite growth, Polygon NFTs’ sales volume dropped in the last 30 days.
MATIC’s price was bullish, but market indicators suggested a trend reversal.

Polygon’s [MATIC] NFT space has witnessed traction since the beginning of this year, suggesting growth. Over the past few months, Polygon onboarded a few popular NFT collections like y00ts, which contributed heavily to its growth trajectory.

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However, after a massive uptick in April, Polygon’s key NFT metrics registered a decline. Amidst this, MATIC investors continued to endure losses as the token’s price seemed reluctant to rise.

NEW:

NFT activity (sales volume) on Polygon has increased significantly over the last year. pic.twitter.com/MxdSQbASm6

— Today In Polygon (@TodayInPolygon) August 2, 2023

Are Polygon NFTs’ fortunes turning?

As per Messari’s data, Polygon’s NFT activity has been on the rise since the start of 2023. Among multiple marketplaces, OpenSea, Magic Eden, and Dew were sitting in the top three spots, as they accounted for the highest volumes.

In fact, Polygon Daily’s latest tweet revealed the top NFT collections on Magic Eden in the last seven days. As per the tweet, Yeildnodes NFT was the top performer, followed by y00ts and Owlpha.

Top @0xPolygon NFT Collections Performance on @MEonPolygon Last 7D@y00tsNFT @OwlphaNFT @IcedOutCoinFlip @RingRunnerz @SpaceSkellies @BoomLandGames @GambullsCasino @HyperKongz #onPolygon pic.twitter.com/TjqjrtFaSg

— Polygon Daily (@PolygonDaily) August 2, 2023

However, the growth halted over the last few weeks as multiple key NFT metrics dwindled. For instance, CRYPTOSLAM’s data showed that not only did Polygon NFT’s sales volume decline in the last 30 days, but its number of sellers and buyers also followed the same trend.

To add to the misery, the blockchain’s NFT trade count and trade volume in USD also sank last week.

Source: Santiment

Polygon 2.0 can be the savior

While Polygon’s key NFT metrics plummeted, Polygon 2.0’s popularity started to increase. Its popularity was fueled by the launch of Polygon 2.0 zkEVM Saga Quest.

The project allowed users to mint early adoption proof and qualify themselves for future drops. It also allows users to mint gasless NFTs or win quest prizes. Moreover, to celebrate the launch of Polygon 2.0, several companies launched exclusive NFT collections.

We teamed up with @0xPolygon to celebrate the launch of #Polygon 2.0 with a unique open edition #NFT collection minted exclusively on Twitter.

The results?
Mind-blowing.

Over 50,000 exclusive NFTs were minted in less than 48hs!

Let’s dive into the highlights pic.twitter.com/JNgpIJuLcM

— Suku (@Suku_world) July 28, 2023

For example, Suku partnered with MATIC to release a unique open edition NFT collection. Interestingly, within 48 hours of the release, more than 50,000 NFTs were minted.

All these developments looked encouraging for the blockchain’s NFT space and could soon reflect on the chain’s NFT metrics.

Read Polygon’s [MATIC] Price Prediction 2023-24

MATIC continues to suffer

Amidst this, MATIC investors were feeling the heat from the bears. According to CoinMarketCap, MATIC was down by more than 6% in the last 24 hours. At press time, it was trading at $0.6655 with a market capitalization of over $6.2 billion.

However, the good news was that the scenario could change in MATIC’s favor. CryptoQuant’s data revealed that MATIC’s Relative Strength Index (RSI) was in an oversold position at press time – a bullish signal. Additionally, buying pressure on MATIC also increased as its exchange reserve dropped.