Cryptocurrency News

NFTs Boom on Polygon, Pushing the Network’s User Activity to All-Time High

By January 6, 2022 No Comments

Key takeaways:

  • The Polygon network has managed to achieve several significant milestones in December
  • User activity reached an all-time high, as did the total number of NFTs sold on the network
  • The Etheurem Layer 2 solution’s native MATIC token hit an all-time price peak of $2.91 on December 22, 2021

Over the past couple of months, Polygon has become a hotbed for non-fungible tokens (NFTs), particularly those pertaining to the growing GameFi sector. The sales of unique digital items on the network nearly breached the 2 million mark in December after gaining considerable momentum throughout the second half of 2021.

The number of NFTs sold in December came close to 2 million, a 60% month-over-month increase

Polygon is a Layer 2 protocol designed to connect Ethereum-compatible blockchains and provide an easy-to-scale environment for the broader crypto ecosystem. Low transaction fees and high throughout have garnered attention from numerous gaming companies that have begun to build NFTs on the Layer 2 network. In recent months, this trend had been the key driver behind the surging sales of digital gaming items on Polygon.

December was a record-breaking month in terms of NFTs sold for Polygon. Image source: Dune Analytics

Blockchain research firm Dune Analytics reports that the total number of NFTs sold on Polygon came close to surpassing 2 million in December. This represents a 60% increase over the previous month and an approximately 450% increase since August 2021.

The number of active Polygon addresses retests ATH set in early October

The surge in NFT sales comes amidst a broader ecosystem expansion that Polygon has been experiencing over the last year. According to data from Polygonscan, the number of active Polygon Proof-of-Stake (PoS) addresses increased to 545,163 on January 5, just 21,350 addresses shy from the all-time high peak reached on October 2.

User activity on Polygon has been undergoing a massive surge that started at the tail end of 2021. Image source: Polygonscan

The founder and head developer of Etheruem, Vitalik Buterin, has recently reiterated the importance that Layer 2 protocols play in the marketplace. Crypto investors agree with Buterin’s sentiment, as L2 platforms, such as Loopring and Immutable-X, have performed incredibly well in recent months. 

No other Ethereum L2 solution has been quite as successful as Polygon, however, whose native MATIC token recently managed to break into the crypto top 20. MATIC reached an ATH of $2.91 last week on the tailwind of impressive 7,485% yearly gains.