MATIC Price Rises 3%, NFT Sales Soar Despite Bearish Trends
A Look at MATIC’s Recent Price Increase
MATIC, also known as Polygon, has seen a price increase of nearly 3% in the last 24 hours. This ended a week of loss, in which the cryptocurrency lost 9.7% of its market value, according to data from CoinMarketCap.
Trading Volume and Market Sentiment
Despite the price increase, the trading volumes of MATIC in USD fell by more than 50% in the same period. Normally, low trading volumes in an upward trend are interpreted as bearish signals. This is because traders show no interest in buying the asset. In addition, a decreasing volume in an upward trend could suggest that it is time to sell and take profits.
The weighted market sentiment of MATIC slipped further into the negative range, strengthening the bearish narrative of MATIC.
Derivatives Market and MATIC
Speculative interest in MATIC has been declining since the beginning of the year. According to Coinglass, the open interest (OI) in MATIC futures was $199 million at the time of publication of this article, a decrease of 34% since the beginning of the year.
In addition, the number of short positions for the coin has consistently outnumbered the long positions since the beginning of 2024. This suggests that derivatives traders were not too optimistic about MATIC at the time of publication of this article.
Polygon’s NFT Market
Despite the negative news, there are also positive aspects. For example, the Polygon blockchain recorded NFT sales of $90 million in January, the highest monthly volume since April 2022.
Polygon firmly stands as the fourth largest blockchain for NFT trading in the last month, with sales of more than $100 million, according to CryptoSlam. This represents an increase of 70% compared to the previous month.
Earlier this month, the Layer-2 (L2) chain reached a historic milestone by overtaking Ethereum [ETH] in 24-hour NFT sales for the first time. The driving force behind the Polygon NFT boom were the collections from the Web3 game Gas Hero.
It’s important that you do your own due diligence before making any moves. The cryptocurrency markets are volatile and can change quickly. Always stay informed and educate yourself well before investing.
Sources: CoinMarketCap, AMBCrypto, Santiment, Coinglass, CryptoSlam.