Investors and NFTs, the odds of Polygon losing both are…
In the consolidating market, most assets have been finding balance slightly above the level where they began their rally. Not Polygon [MATIC], however, as the cryptocurrency has already invalidated all of March’s growth. In fact, while the spot market has been suffering, the DeFi front of the asset isn’t acing either.
Has not been faring well over the past two months. It has been consistently testing the $1.36 line as support even after two separate hikes, which were both equally lacklustre.
The first one, seen towards the end of February, led to a hike of 16.35%. The most-recent mid-March to April rally was worth less than 25%.
Polygon price action | Source: TradingView – AMBCrypto
Consequently, investors began losing patience, and their dejection was visible in their behavior. While towards the beginning of the month, on average, more than 7k investors conducted transactions on-chain, at press time, the figure was below 3k.
Polygon active addresses | Source: Intotheblock – AMBCrypto
Consequently, on-chain transactions took a hit as well. Although a slight improvement was noted towards the beginning of the month, over a 24-hour period, unique transactions slipped by 74%.
Polygon monthly unique addresses | Source: Dune – AMBCrypto
Interestingly, at the same time, out of no correlation, this disappointment seems to have extended to Polygon NFTs as well. Opensea has always had domination of Ethereum-based NFTs, but Polygon NFT collections too had their demand. This, however, has now severely subsided.
At the beginning of this year, sales crossed 2.68 million NFTs in a month. Last month, just a little over 500k NFTs were sold.
Polygon NFTs monthly selling volume | Source: Dune – AMBCrypto
Thus, as demand fell, the overall monthly
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