Polygon NFTs: After DeGods, y00ts, and Trump, where will the network head next
Interest in Polygon NFTs declined despite initial hype.
NFT marketplaces get negatively impacted as sales and buyers decrease.
Polygon [MATIC] has made massive developments in the DeFi and zkEVM space, allowing the network to attract a large number of users to its protocol. However, NFTs have also played a large role in Polygon’s developments.
The interest in Polygon’s NFTs could soon be exacerbated by new collections migrating to Polygon. According to Polygon Daily, Baby Bulls NFTs will launch on the Polygon network. When this limited NFT collection was launched previously, the whole collection sold out within an hour.
Other Blue Chip NFT collections on the network, such as y00ts, Trump Digital Collection, and PolygonMonkeys, did relatively well on OpenSea over the last week.
However, their overall across marketplaces was not as positive.
For context, the y00ts collection was one of the most popular collections on the Solana [SOL] network. It was a part of a larger NFT community known as DeGods, which also started out on Solana. However, at the beginning of this year, both these collections planned to migrate to different chains.
While DeGods planned to migrate to Ethereum, y00ts moved to Polygon on 27 March. Since then, the y00ts collection became one of the most popular NFTs on the Polygon network.
However, after its launch on the Polygon network, interest in the NFT collection declined.
According to Dapp Radar’s data, the number of unique active wallets that were holding these NFTs fell by 45% in the last 30 days. Subsequently, the number of transactions on the NFT also fell by 75.14%.
Source: Dapp Radar
Only time will tell whether the y00ts NFT collection will see a resurgence in interest.
Another NFT collection that drew attention to Polygon’s NFTs was the Trump Digital Trading Card Collection. This collection was launched in December 2022. The NFT collection attracted significant attention owing to the polarizing perception of the former President of the United States.
However, the collection faced the same fate as y00ts. During the initial stages of the launch of the NFT collection, the floor price was relatively high. However, as time went on, the floor price of the collection fell significantly. This could be attributed to the decline in sales of this NFT collection.
NFT PRICE FLOOR’s data indicated that the sales of this particular collection fell by an alarming 75% in the last three months.
Source: NFT PRICE FLOOR
The social angle
Along with various NFTs launching on the Polygon network, many collaborations with social media giants were also made during this period.
Reddit was one website that launched NFT compatibility on its network through the Polygon network. However, according to Dune Analytics data, the overall sales and volume of these Reddit NFTs also fell in the last few months.
Source: Dune Analytics
The announcement of these NFTs on the Polygon network attracted a lot of activity on the social media front when they were first announced. Although, the number of social engagements and mentions for Polygon fell by 24.1% and 40.1% respectively over the last week until press time.
How Polygon NFTs reacted
Due to the poor performance of these NFT collections, the overall NFT volume on marketplaces declined. Out of these marketplaces, OpenSea had the largest share out of all.
At press time, OpenSea had captured 88.0% of the overall NFT volume on the Polygon network.
Source: Dune Analytics
Despite its dominance in the NFT markets, the volume, transactions, and active wallets on the network fell materially in the last week, according to Dapp Radar’s data.
MagicEden, the second most popular NFT marketplace for Polygon NFTs, witnessed a similar fate. Over the last few months, the number of sales on the platform declined materially. Coupled with that, the overall number of buyers and sellers on the Magic Eden platform also dropped.
Source: Dune Analytics
Impact on MATIC
The declining interest in NFTs could have a severe impact on the state of MATIC. At press time, the token was trading at $0.9334 and had fallen by 4.58% over the last 24 hours as per CoinMarketCap.
However, the decline in prices has also led to a fall in the MVRV ratio of Polygon. A negative MVRV ratio would indicate a large number of addresses wouldn’t be profiting by selling their MATIC holdings. Additionally, the long/short difference was also observed to be moving in a positive trajectory, indicating that many short-term holders had exited their holdings.
Short-term holders exiting their holdings could prove beneficial for MATIC in the long term.