Polygon NFT Volume Hits 6-Month High, Igniting Renewed Interest in Layer-2 Scaling Solution

cryptonews.com:

The NFT market on the Polygon blockchain network saw considerable growth and renewed interest in December 2023, according to data from market trackers CryptoSlam and DappRadar.

Polygon’s daily NFT sales volume spiked to nearly $10 million on December 6—the highest single-day volume seen in over six months—making Polygon the third-largest NFT market behind Ethereum and Bitcoin for that day.

The increase in NFT trading volume brought about a rise in the MATIC price as well. MATIC gained over 3% in the past 24 hours to trade around $0.83, buoyed by the upbeat Polygon NFT metrics.

Polygon’s surge also enabled it to flip Solana in terms of NFT sales volume. The takeover started when Solana NFT volume declined 17% to $4.1 million in a day, while Polygon saw its volume jump 42% to hit the $10 million milestone, according to data from CryptoSlam.

DappRadar shows that popular Polygon NFTs driving growth include Genesis WildPass, Collect Trump, The Sandbox, and Gas Hero Coupon. Trade volume for these collections has been steadily rising over the past month.

Polygon’s NFT sales volume is continuing its growth with nearly $40 million in January already.

NEW:

Polygon nears $40M in NFT sales volume for the month of January only 8 days into the month. pic.twitter.com/zaklYAoPkN

— Today In Polygon (@TodayInPolygon) January 8, 2024

Some areas of concern are still present within Polygon’s ecosystem, however. The number of unique addresses and transaction count declined after peaking on Christmas day, hinting at potential weaknesses.

The rise in wash trading is also problematic, with reported wash volume exceeding $850,000 on Polygon. But this pales compared to the $10 million in organic volume, easing some concerns.

Overall, Polygon’s resurgence