Once more, Polygon NFTs on Opensea outperform Ethereum.
The number of unique Polygon NFTs sold on OpenSea has surpassed the number of Ethereum-based collectibles for the past two months in a row, according to data from the Dune Dashboard.
This pattern has persisted unabatedly since December, when OpenSea handled the sale of 1.3 million NFTs as opposed to the 1 million NFTs that were sold on Ethereum. While the Ethereum mainnet claimed sales of more than 1.1 million NFTs through the same market, OpenSea reported the sale of more over 1.5 million NFTs on the Polygon layer 2 chain in the month of January.
Since 2020, the exponential rise of Defi and NFTs on the Ethereum network has resulted in an increase in transaction volumes, which clogs the network and drives up gas prices during periods of high usage. On a blockchain network, a set quantity of gas, a unit of measure used to calculate transaction fees, must essentially be paid for each transaction. These fees have prompted a search for substitutes, like Polygon, Solana, and Avalanche, which provide more effective chains and cheaper transaction costs to host big volume NFT collections.
Polygon’s NFT market is seeing a spike in popularity as a result of its alliances with renowned businesses like Reddit. The number of new and returning customers in Polygon’s NFT market reached record highs in December 2022 despite the decline in the cryptocurrency market.
Polygon’s NFT market is seeing a spike in popularity as a result of its alliances with renowned businesses like Reddit. Despite the decline in the cryptocurrency market, Nansen data shows that in December 2022, the number of new and repeat purchasers in Polygon’s NFT market reached all-time highs.
Rise of Polygon as a Source for Gaming NFTs and Inexpensive Collectibles
Recent research found that Polygon performed marginally better than Ethereum. However, with 319,641 traders on Ethereum compared to 224,719 on Polygon, Ethereum still has more traders than Polygon.
Since the beginning of the year, Polygon has sold more non-fungible tokens than Ethereum, although Ethereum still has a far higher market value overall. On OpenSea, Ethereum trades in January were worth around $446 million, compared to the $15.4 million in sales of Polygon NFT. Data from Cryptoslam shows that over the past seven days, Ethereum has sold $179 million worth of tokens whereas Polygon has only sold $2 million.
It’s important to note that this is not the first occasion when the total monthly sales of Polygon NFT have eclipsed Ethereum. Similar increases in sales were seen in late 2021 and early 2022, but after that, until recently, there was a decline in Polygon sales. The majority of the most well-known and pricey NFTs, such as the Bored Ape Yacht Club, continue to trade on Ethereum, which has a much higher trading volume than Polygon. However, the sidechain network is becoming more popular as a place to store gaming NFTs and inexpensive collectibles, which could encourage more people to use NFTs by reaching a wider audience.