- MATIC’s Weighted Sentiment slipped deeper into negative territory.
- Polygon’s NFT marketplace continues to grow, generating $90 million in sales as of January.
Polygon (MATIC) rose nearly 3% over the last 24 hours of trading, ending a losing week that saw the cryptocurrency’s market value fall 9.7%, according to data from CoinMarketCap.
Source: CoinMarketCap
But it’s not what you think!
Counterintuitively, MATIC’s USD trading volume has fallen by more than 50% over the same period, according to AMBCrypto’s analysis of Santiment data.
Typically, low volume during an uptrend is interpreted as a bearish signal. This is because the trader is not interested in purchasing the asset.
Moreover, decreasing volume during an uptrend may suggest that it is time to sell and take profits. However, this should not be taken as market advice and readers are encouraged to conduct due diligence before taking any action.
Source: Santiment
Weighted Sentiment also slipped deeper into negative territory, lending credence to MATIC’s bearish narrative.
MATIC has not become popular with derivatives traders.
Speculative interest in MATIC has plummeted since the beginning of the year. According to Coinglass, as of this writing, open interest (OI) in MATIC futures is $199 million, down 34% year-over-year (YTD).
Source: Coinglass
Additionally, the number of short positions on the coin has consistently surpassed long positions since early 2024.
Based on this publication, we make sure that derivatives traders are not too optimistic about MATIC.
Polygon’s NFT market looks good
But not everything was doom and gloom. According to a recent
NEW: Polygon has surpassed $90 million in NFT sales in the month of January to date.
This is the highest monthly trading volume since April 2022. pic.twitter.com/0yiYfiwgFl
— Today In Polygon (@TodayInPolygon) January 20, 2024
According to CryptoSlam, Polygon has remained strong as the fourth largest blockchain in NFT trading with over $100 million in total revenue over the past month. This is a 70% increase compared to the previous month.
Source: CryptoSlam
Read Polygon (MATIC) Price Prediction for 2023-24
Earlier this month, the Layer 2 (L2) chain achieved a historic milestone by becoming the first to convert Ethereum (ETH) to 24-hour NFT sales.
The driving force behind the Polygon NFT boom was the collection of the Web3 game Gas Hero. Gas Hero Common Heroes was the second most traded collection last month with sales exceeding $35 million.