In January 2023, Polygon NFT transactions on OpenSea surpassed Ethereum NFT transactions for the second consecutive month, as per a report by NFT Gators on February 1st.
Despite a decrease in the average transaction fee, the NFT lending market saw record growth in monthly loan volume, the number of loans, and the number of participating lenders and borrowers.
The Rise of Polygon in the NFT Market
January saw the highest monthly count of Polygon NFT traders ever recorded, at 224,719. The Polygon PoS blockchain also experienced a daily average of 3,022,920 transactions during the month. On average, Polygon NFT traders traded 7 NFTs, surpassing the average number of trades made by Ethereum NFT traders. However, their spending was limited to just $69.
Meanwhile, Ethereum NFTs on OpenSea recorded a trading volume of $444 million, attracting 319,641 traders who sold 1,132,681 NFTs. The average Ethereum NFT trader traded $1390 and 3.54 NFTs on average.
Additionally, in January, the NFT lending market saw a remarkable surge, with a total of 17.9K ETH, valued at around $28 million, borrowed through 4,399 loans. This resulted in record highs in the number of both borrowers and lenders, with 616 borrowers and 291 lenders, creating a ratio of 2.12 borrowers per lender.
However, the report also revealed that BendDAO emerged as the largest NFT lending protocol in January, with over $36 million borrowed, followed by NFTfi with $25 million, X2Y2 with $12 million, and Arcade with $7.8 million.
The increase in loans resulted in a decrease in interest per loan, with lenders now paying $90 per loan. Wash trading among Ethereum NFTs in January was less than 0.6% of the total trade count.
The Rise of Polygon (MATIC) Price
The MATIC price has made a significant jump on its daily chart, rising nearly 12% after overcoming its immediate resistance at $1.20. Over the last week, the altcoin has seen impressive gains, soaring by nearly 22.31%.
CoinMarketcap’s data shows that MATIC is at a pivotal moment, with a potential for a significant boost in value if it can break through the next resistance level.
The technical outlook remains favorable for the bulls, with MATIC currently trading at $1.22. The 24-hour trading volume has also seen a surge, jumping by 115%.