Can Polygon’s launch of the first NFT collection on zkEVM drive the growth of MATIC?

Polygon’s NFT Space Witnesses Decline Over Last Seven Days

Over the last week, Polygon’s [MATIC] NFT space experienced a decline in trade count and sales volume. According to Santiment’s chart, the total NFT trade count went down sharply. Additionally, CRYPTOSLAM’s data showed a marginal decline in NFT sales volume.

A Closer Look at Polygon’s NFT Space

Despite the recent decline, Polygon’s NFT space may witness a boost in the coming days. On May 2nd, the protocol announced the launch of the first NFT collection on the zkEVM mainnet. This launch has the potential to increase sales and trade counts.

The official tweet stated that token IDs #80001+ will receive “Unconstrained,” token IDs #20001-#80000 will receive “Scalability,” and token IDs #1-#20000 will receive “For Mankind” NFTs. With this new launch, growth in Polygon’s NFT ecosystem can be expected as it might attract new users.

zkEVM’s State as It Launches New NFTs

zkEVM’s performance has been declining for quite some time now as its key metrics dwindled. For instance, the number of unique depositors and deposits remained low. Gas usage also declined over the past few weeks, suggesting less use of the platform. However, the good news is that after a steep decline, daily transactions on zkEVM showed signs of recovery as the graph registered an uptick lately.

MATIC is Recovering

MATIC, which has been facing the wrath of the bears for quite a few days, also gave hope for brighter days. According to CoinMarketCap, MATIC’s price increased by more than 2% in the last 24 hours. At the time of writing, it was trading at $0.983 with a market capitalization of over $9 billion.

Is MATIC’s Price Hike Sustainable?

Matic’s demand in the futures market increased, as evident from its green Binance funding rate. Net deposits on exchanges were low compared to the 7-day average. This can be interpreted as lower selling pressure. However, apart from these, most metrics were against a price hike.

MATIC’s network growth declined, hinting that fewer new addresses were used to transfer the token. Whales’ interest in Polygon also seemed to have declined. Another bearish indicator was an uptick in MATIC’s supply on exchanges. This was accompanied by a decline in the token’s supply outside of exchanges, which is a typical bearish signal.