Polygon Network (MATIC) has once again cemented its dominance in the non-fungible tokens (NFTs) segment. Despite a large number of wash-trading trades, it outperformed Solana (SOL) in key trading metrics and shows no signs of exhaustion.
Polygon (MATIC) handles 3x more NFT-related transactions than Ethereum (ETH)
In terms of the cumulative volume of NFT transactions over 30 days, Polygon (MATIC) became the most popular blockchain outside of Ethereum (ETH). As co-founder Sandeep Nailwal points out, this is the first time his blockchain has reached this status. Nailwal shared some possible reasons for this great uptick.
.@0xPolygon NFT ecosystem ranks second in terms of volume traded for the first time over a 30D period.
Some other observations:
1. This is when a lot of Polygon NFT volumes are done by games etc that process credit card payments etc but only transfer NFTs… pic.twitter.com/eJk1o78q87— Sandeep Nailwal | sand deep. polygon đź’ś (@sandeepnailwal) August 15, 2023
First of all, the Web3 games segment accounts for the bulk of Polygon’s NFT trading volume. Games with credit card support have also contributed to Polygon’s success in this area.
Despite being the second NFT-centric chain in terms of trading volume, Polygon (MATIC) surpasses Ethereum (ETH) by 200% in terms of number of transactions. Most of these transfers are micropayments, which is what excites Nailwal the most:
That means a lot of microtransactions are happening, which is ultimately crypto’s dream. So this is encouraging.
In this rivalry, Polygon (MATIC) prevails over Solana (SOL), which has been promoted as a go-to blockchain for NFTs. In the first quarter of 2023, some large NFT projects migrated from Solana (SOL) to Polygon (MATIC).
For example, such a migration was initiated by y00ts, one of the most popular NFT platforms.
Wash trading remains a 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 mass 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 involving tokens designed to make the metrics more attractive, remains a major problem.
In 2022-2023, Polygon (MATIC) scored a number of partnerships with “real” companies interested in offering their own NFT collections.
By partnering with a number of Web2 heavyweights from Reddit to Nike and Mastercard, Polygon (MATIC) has proven itself as a reliable and flexible platform for frictionless business NFT launches.