Polygon NFTs: After DeGods, y00ts and Trump, where will the network go next?

• Interest in Polygon NFTs waned despite the initial hype.
• NFT marketplaces are 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 the protocol. However, NFTs have also played a large role in Polygon’s development.

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Interest in Polygon’s NFTs may soon be exacerbated by new collections migrating to Polygon. According to Polygon Daily, Baby Bull’s NFTs will launch on the Polygon network. When this limited NFT collection was launched earlier, the entire 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 this past week.

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Most traded Polygon NFT collections on @open sea Last 7 days@y00tsNFT@TheSandboxGame@LensProtocol@CollectTrump@PolygonMonkeys@CyberKongz@ArcheWorld_NFT@OwlphaNFT#onPolygon pic.twitter.com/m22d1wyvBb

— Polygon Daily 💜 (@PolygonDaily) 5 May 2023

Some Blue Chips turn red

However, their generality across marketplaces was not as positive.

For context, the y00ts collection was one of the most popular collections on Solana [SOL] Network. It was part of a larger NFT community known as DeGods, which also started at Solana. But at the beginning of this year, both of these collections planned to migrate to different chains.

While DeGods planned to migrate to Ethereum, y00ts moved to Polygon on March 27th. Since then, the y00ts collection became one of the most popular NFTs on the Polygon network.

After its launch on the Polygon network, however, interest in the NFT collection waned.

According to Dapp Radar’s data, the number of unique active wallets containing these NFTs dropped by 45% in the last 30 days. Subsequently, the number of transactions on NFT also fell by 75.14%.

Source: Dapp Radar

Only time will tell if y00t’s 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 considerable attention due to the polarizing opinion of the former President of the United States.

However, the collection met the same fate as y00ts. In the initial stages of the launch of the NFT collection, the floor price was relatively high. As time went by, however, the floor price of the collection dropped significantly. This can be attributed to the decline in sales of this NFT collection.

NFT PRICE FLOOR’s data indicated that 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 launched on the Polygon network, many collaborations with social media giants were also made during this period.

Reddit was a site that launched NFT compatibility on its network through the Polygon network. However, according to Dune Analytics data, overall sales and volume of these Reddit NFTs also declined in recent 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 social engagement and mentions for Polygon fell by 24.1% and 40.1% respectively in the last week up to press time.

How polygon NFTs reacted

Due to the poor performance of these NFT collections, the overall NFT volume in marketplaces fell. Of these marketplaces, OpenSea had the largest share of all.

At press time, OpenSea had captured 88.0% of the total NFT volume on the Polygon network.

Source: Dune Analytics

Despite the dominance of the NFT markets, the volume, transactions and active wallets on the network dropped significantly in the last week, according to Dapp Radar’s data.

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MagicEden, the second most popular NFT marketplace for Polygon NFTs, experienced a similar fate. During the last few months, the number of sales on the platform has decreased significantly. Along with that, the total number of buyers and sellers on the Magic Eden platform also fell.

Source: Dune Analytics

Impact on MATIC

The declining interest in NFTs could have a serious impact on the state of MATIC. At press time, the token was trading at $0.9334 and had fallen by 4.58% in the last 24 hours according to CoinMarketCap.

However, the price drop has also led to a drop in the MVRV ratio of Polygon. A negative MVRV ratio would indicate that a large number of addresses would not profit from selling their MATIC holdings. In addition, the long/short differential was also observed moving in a positive path, indicating that many short-term holders had exited their holdings.

Short-term owners exiting their holdings could prove beneficial to MATIC in the long run.

Source: Sentiment