Polygon: Why Web2 companies could be the secret behind the NFT segment’s growth
- Polygon recorded the strongest NFT sales growth in October
- Web2 companies may be the reason why NFTs worth less than $1000 are increasing in popularity
Messari released a report highlighting how some of the top blockchain networks have performed in terms of NFT sales growth. Polygon stood out among the listed networks because it had negative sales growth for most of 2022. However, it also recorded the strongest NFT sales growth in October.
Read Polygon’s [MATIC] price forecast 2023-2024
According to the Messari analysis, Polygon’s NFT sales growth recorded a massive increase in October due to Web2 companies. Numerous large companies such as Meta, Starbucks and Reddit showed interest in Polygon in September. They chose Polygon as the ideal platform to roll out their NFT offerings.
How have NFTs fared during the downturn?@0xPolygon saw a 191% increase in NFT sales since late September as Web2 companies sought to fully integrate NFTs into their platforms.@Starbucks, @Redditand @Meta have all integrated with @0xPolygon. pic.twitter.com/pIgXQgdgwt
— Messari (@MessariCrypto) 30 November 2022
Why is the increase in Polygon’s NFT sales in October important? Well, it highlighted a potential growth driver that could make the network more attractive, especially to Web2 companies going forward.
As the NFT market continues to evolve, more market players are jumping on board. Many Web2 companies will choose to use a pre-existing network rather than building from scratch, and that’s where Polygon comes in.
The fact that some of the top Web2 companies have already identified Polygon as an ideal solution can be considered a big plus for the network. In addition, this may encourage more Web2 companies to follow the same route.
Polygon’s overall NFT performance in 2022
A look at Polygon’s NFT metrics confirmed that 2022 has certainly not been a good year for NFTs. The network’s total NFT trade volume and number of NFT trades showed more activity in the first half of the year than the second half of 2022.
Source: Sentiment
Another interesting observation about Polygon NFTs was that the involvement of Web2 companies supported cheaper NFTs. The total volume for NFTs worth less than $1,000 was more active between September and November. This was around the same time that the aforementioned Web2 companies jumped on board.
Source: Sentiment
Meanwhile, the total volume for NFTs worth over $100,000 has been dominant, especially at the beginning of the year. This was because the most valuable NFTs are often only available to the wealthy. The involvement of Web2 companies can change the dynamics of NFT’s demand.
Web2 companies often target the rail segment which may hold the key to future growth for the segment. This was because an NFT value offering at a much more affordable price point could trigger higher volume and demand in the future. This can also be the reason why the involvement of Web2 companies, especially through networks like Polygon can be a game-changer.
