From Polygon NFT Wins To MATIC Gains: Understanding The Connection

Christian Encila

1 year ago

3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Created by industry experts and meticulously reviewed

The highest standards in reporting and publishing

How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Polygon has recently witnessed a remarkable surge in its non-fungible tokens (NFTs) sales volume and the influx of sellers participating in this burgeoning market.

This growth in the NFT sector has sparked considerable interest and speculation among investors, prompting many to ponder the potential impact it may have on the price of MATIC, the native cryptocurrency of the Polygon network.

However, despite the impressive surge in NFT sales volume and seller participation, a closer examination reveals that not everything works in Polygon’s favor.

While the NFT market on the platform may be flourishing, other factors could impact the overall sentiment and performance of MATIC.

Polygon NFT sales are trending up.

Polygon NFT summer? pic.twitter.com/9Jh2ENkyjj

— Narb (@NarbTrading) July 20, 2023

MATIC Price Movement In Response To Metric Movement

The recent MATIC price report indicates a remarkable surge in Polygon NFT sellers, recording a staggering increase of over 480% within the last 30 days.

Meanwhile, MATIC’s current price stands at $0.772874 according to Coingecko, experiencing a 1.6% rally in the last 24 hours but also facing a 4.3% decline. Several factors could explain this lackluster price performance.

Source: Cryptoslam

For one, market sentiment plays a crucial role in shaping cryptocurrency prices, and during this period, overall opinion towards cryptocurrencies, including MATIC, might not have been favorable.

Source: Coingecko

Regulatory uncertainties, macroeconomic events, and broader market trends could have overshadowed the positive impact of the NFT growth on Polygon.

However, price movements in the cryptocurrency market may only sometimes reflect immediate developments. There could be a time lag between the surge in NFT volume and its direct impact on MATIC’s price. Market reactions can be delayed, and sustained growth in NFT activity may be required to affect the token’s value significantly.

Rising Competition Poses Challenge For Polygon

A recent report also highlights the increasing competition that Polygon, a Layer-2 scaling solution for Ethereum, is facing within its market niche. Polygon has been known for its ability to enhance Ethereum’s performance, making it faster, cheaper, and more efficient.

MATIC market cap currently at $7.11 billion. Chart: TradingView.com

However, the emergence of numerous other cryptocurrencies offering similar services, including Optimism, poses a significant challenge to Polygon’s once-dominant position in the sector.

In the past, Polygon enjoyed a clear lead in the Layer-2 scaling niche, capturing investor attention and interest. However, the current market dynamics indicate that this advantage has diminished.

Despite its impressive features, the price of Polygon has exhibited minimal movement throughout the year, indicating subdued investor sentiment and potentially reduced demand.

On the other hand, Optimism, a direct competitor to Polygon, has experienced remarkable growth over the year, with its yearly growth soaring by over 80%.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Coin Chapter

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.