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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.