NFT trading volume on Polygon is growing again: will this affect the price of MATIC
Date: 2023-08-06 Author: Karina Ziganova Categories: BLOCKCHAIN
On August 2, the Polygon network-based NFT gaming project Mojo Melee announced a six-month collaboration with e-commerce giant Amazon.
Amazon Prime subscribers can now get free NFT at Polygon. With over 200 million people worldwide using Prime, their growing interest in non-fungible tokens could have a significant impact on MATIC's price dynamics.
Amazon partnership to boost NFT trading on Polygon
According to historical data, NFT trading volumes are closely correlated with Polygon price dynamics: when minting non-fungible tokens, users burn a small amount of MATIC. This takes the coins out of circulation, reducing the supply. Therefore, partnership with Amazon may have a positive impact on asset quotes.
As shown in the chart below, between July 26 and August 2, the volume of NFTs under $1,000 decreased by 75% from 10,523 to 2,668. After the Amazon deal was announced, it started to rise again and reached 4,400 in the last 2 days. and 4,800 respectively.
MATIC whales unimpressed by new partnership
While the partnership with Amazon could benefit MATIC's price, major holders of the asset remain skeptical.
According to the Santiment platform, between July 15 and August 4, addresses with a balance of 10 to 100 million Polygon got rid of 46 million coins worth about $28.4 million. Such a significant outflow of funds in a short period could negatively affect the price of the asset.
Given the mixed performance of on-chain indicators, MATIC price action is likely to remain neutral in the coming days.
Polygon Price Prediction: Bears and Bulls Equalized
According to IntoTheBlock, MATIC is currently trading between two powerful walls ranging from $0.65 to $0.70. This once again confirms the forecast that the asset will continue to consolidate in the coming days.
The chart below shows that the 9,003 addresses that purchased 43.7M Polygon at the $0.65 floor price could effectively counter the bears and prevent further declines.
However, it will not be easy for the bulls to break out of the $0.72 area. 6,960 wallets buying 259.2 million MATICs at an average price of $0.69 could prevent a new rally from starting.
