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Polygon Network (MATIC) yet again strengthened its dominance in the segment of non-fungible tokens (NFTs). Despite a big number of wash-trading transactions, it exceeded Solana (SOL) by major trading metrics and shows no signs of exhaustion.
Polygon (MATIC) processes 3x more NFT-related transactions than Ethereum (ETH)
In terms of 30-day cumulative volume of NFT transactions, Polygon (MATIC) became the most popular blockchain outside Ethereum (ETH). As stressed by its cofounder Sandeep Nailwal, this is the first time his blockchain has reached this status. Nailwal shared some possible reasons of this marvelous upsurge.
.@0xPolygon NFT ecosystem, for the first time, across a 30D period gets on the second rank in terms of traded volume.
— Sandeep Nailwal | sandeep. polygon 💜 (@sandeepnailwal) August 15, 2023
Few other observations:
1. This is when a lot of Polygon NFT volumes are done by games etc which process payments via Credit Cards etc but only transfer NFTs… pic.twitter.com/eJk1o78q87
First of all, the Web3 games segment is responsible for the majority of Polygon's NFT trading volume. Games with credit cards support also contributed to Polygon's success in this field.
Despite being the second NFT-centric chain by trading volume, Polygon (MATIC) exceeds Ethereum (ETH) by the number of transactions by 200%. The majority of these transfers are micro-payments, which excites Nailwal the most:
That means there is a lot of micro transactions happening which is ultimately the dream of crypto. So this is encouraging.
In this rivalry, Polygon (MATIC) overcomes Solana (SOL), which has been promoted as a go-to blockchain for NFTs. In Q1, 2023, some major NFT projects migrated from Solana (SOL) to Polygon (MATIC).
For instance, such migration was initiated by y00ts, one of the most popular NFT platforms.
Wash trading remains problem for Ethereum, Polygon
Also, the number of buyers on Polygon (MATIC) is 30% higher than on the Ethereum (ETH) mainnet. It is an indicator of massive adoption of Polygon (MATIC) as a mainstream NFT-centric blockchain.
At the same time, Nailwal admitted that for both Ethreum (ETH) and Polygon (MATIC), "wash trading," a zero-sum manipulative operation with tokens designed to make its statistics more attractive, remains a major problem.
In 2022-2023, Polygon (MATIC) scored a number of partnerships with "real-world" businesses interested in listing their own NFT collections.
Collaborating with a couple of Web2 heavyweights, from Reddit to Nike and Mastercard, Polygon (MATIC) proved itself as a reliable and flexible platform for frictionless corporate NFT launches.