One of many areas through which Polygon has been rising is within the sector of non-fungible tokens (NFTs). To present an concept of the extent of the Layer 2’s development, it has managed to promote extra particular person NFTs on its community than Ethereum (ETH).
In January, the OpenSea market reported over 1.5 million NFT gross sales on Polygon’s scalable community, outpacing Ethereum’s 1.1 million gross sales in the identical interval. Regardless of Ethereum recording a better traded worth in NFTs ($446 million) in comparison with Polygon’s $15.4 million, Polygon has persistently outperformed the good contracts platform within the NFT sector because the finish of 2022.
The best quantity NFT collections on Polygon, in accordance with OpenSea knowledge, are Trump Digital, Lens Protocol and Unstoppable Domains.
What could possibly be behind Polygon’s efficiency
The decline of Solana (SOL) could have performed a big position within the latest success of Polygon (MATIC) within the NFT sector. Solana was as soon as a significant participant in NFTs and second solely to Ethereum, however its fall after the FTX collapse has negatively impacted its efficiency on this space.
Moreover, a number of scandals have contributed to Solana’s lack of floor to Polygon. As an illustration, in early 2023, Magic Eden, Solana’s NFT market, offered counterfeit digital artwork, inflicting hurt to the repute of the NFT market. Though the mission pledged to compensate affected consumers, the injury has already been finished.
Moreover, the staff behind NFT initiatives y00ts and DeGods obtained a $3 million funding to transition its Solana collections to Polygon, placing extra strain on the SOL blockchain. In keeping with Frank III, founding father of the initiatives, the transfer to Polygon was made resulting from its superior platform for his or her initiatives.
Polygon’s strategic partnerships and low-fee mannequin additionally contribute to its development within the NFT world. By partnering with corporations equivalent to Meta, Starbucks and gaming initiatives, Polygon provides worth to its ecosystem. Its price construction, which is considerably decrease than Ethereum’s, makes it a extra enticing possibility for NFT initiatives. Moreover, Polygon’s distinctive structure permits for simpler and sooner creation, commerce and switch of NFTs in comparison with the Ethereum community. With these elements working in its favor, Polygon is poised for continued development within the NFT sector.
