Key Findings

• Over the last three months (as of early March), the Polygon NFT market has seen over $22 million in resale transactions
• During this time period, an average of nearly 250,000 NFTs were traded on Polygon.
• More than 80,000 unique buyers participated in the Polygon NFT market in the last three months
• Due to the uneven distribution of sales transaction volumes, we use the median value, which is approximately $3.6 per sale transaction, as the average NFT sales transaction volume.
• The number of sellers is greater than the number of buyers, indicating that many buyers are also sellers, and some of the original NFT recipients who claimed NFTs are also selling them

Let's examine the top collections on the Polygon NFT market in terms of transaction volume, number of buyers, sales volume, and number of NFTs

Key Findings

• The average monthly number of NFTs mint transactions is over 9 million, which is significantly higher than the resale volume
• During the last three months, there were approximately 1 million NFT claimers or first-hand buyers, which is ten times the number of buyers on the secondary market
• The median sales volume is zero and the average sales value is around $8, indicating that more than half of the buyers (over 500,000) claimed the free NFTs.

In NFT (Non-Fungible Token) culture, the "secondary market" refers to the market for buying and selling previously minted NFTs that have already been sold by the original creator. In other words, the secondary market is where NFTs are traded among collectors after the initial sale. This market can be a platform or a marketplace where NFTs are bought and sold, with transactions typically taking place using cryptocurrency such as Ethereum. The secondary market for NFTs has grown rapidly, with some NFTs being resold for prices that far exceed their original sale prices. This has created opportunities for collectors to profit from their NFT holdings and for artists to receive ongoing revenue from their creations.

In the first part of our analysis, we examine the secondary market metrics for Polygon NFTs.

Let's analyze these metrics over time to identify any trends in the Polygon NFT sales market in recent months.

In NFT (Non-Fungible Token) culture, "mint" refers to the process of creating a new NFT and recording it on a blockchain network. Minting involves generating a unique cryptographic token that represents a digital asset, such as a piece of artwork, music, or a tweet, and assigning it a unique identifier on the blockchain. This identifier acts as proof of ownership and provides a way to track the NFT's ownership history and transactional details. Minting NFTs has become a popular way for artists and creators to monetize their digital creations and for collectors to acquire and trade unique digital assets.

Using on-chain data, let's analyze the NFT mint transactions on Polygon over the past three months

Key Findings from On-Chain Analysis of the Polygon NFT Market

In conclusion, our analysis of the Polygon NFT market over the past three months has revealed several key insights. Firstly, the secondary market accounts for a significant portion of the total sales volume, with over $22 million spent on NFTs during this period. Additionally, the number of unique buyers active in the market was over 80,000, with an average of almost 250,000 NFTs traded on Polygon. We also found that the median sales volume for NFTs was relatively low at around $3.60 per transaction, reflecting the significant number of free NFTs claimed by buyers.

In the NFT market on Polygon, there is a significant volume imbalance in NFT purchases, with a small number of NFTs having very high prices and the rest not costing more than a few dollars. There has been a significant increase in the average weekly volume of NFT purchases since the beginning of February 2023, coinciding with the growth of Bitcoin's price. While there is no direct relationship between the price of Matic and the number of NFT purchases, it seems that with the increase in the price of Matic, the number of transactions has decreased significantly. The number of active NFT collections for buying and selling has grown from about 300 in November 2022 to about 900 in March 2023, and the difference between sellers and buyers has decreased significantly since the beginning of 2023.

In February 2023, there was a significant increase in NFT minting on Polygon, with approximately 7 million NFTs minted in a single week. The number of NFT collections minted has more than doubled since the beginning of February, with the highest difference seen in the second week of the month. This suggests that the NFT market on Polygon is experiencing a rapid expansion.

Finally, our analysis of the top collections on the Polygon NFT market showed that some collections stand out in terms of transaction volume, sales volume, and number of NFTs. Overall, our findings suggest that the Polygon NFT market is growing rapidly and that there are opportunities for collectors, creators, and investors to participate in this emerging ecosystem.

Mojtaba Banaie

Twitter: @cryptolizr

E-Mail: mojtaba.banaie@gmail.com

Discord ID: smbanaie#5528

• NFT sales volume is imbalanced, with a small number of high-priced NFTs and most selling for a few dollars.
• The average weekly volume of NFT purchases increased with the growth of Bitcoin in Feb 2023.
• No direct relationship between Matic price and NFT purchases, but transactions decrease with price increase.
• Active NFT collections increased from 300 to 900 from Nov 2022 to Mar 2023.
• Seller-buyer difference decreased significantly in 2023, possibly due to decreased sale of NFTs purchased by users

This analysis was conducted using data from the FlipSideCryto Polygon dataset, which contained only the primary tables related to transactions, such as transaction tables, token transfers, tags, and events. To obtain information on NFTs, we utilized the following filters:

• We analyzed only transactions in the secondary market that had a token ID and a transaction amount greater than zero, disregarding simple and free transfers.
• To determine the costs of purchasing NFTs, we examined token transfers that had an originator and a destination address in the original transaction, eliminating the transfer of intermediate funds.
• For mint analysis, we only considered token transfers with a null address origin and contained a token ID, which could indicate a zero cost for the minting process.

• We have witnessed a significant increase in the number of NFT minted in the last week of February. In the six months leading up to the first week of March 2023, an average of about one and a half million NFTs were minted per week, while in this week alone, about 7 million NFTs were minted.
• The number of minted collections has more than doubled since the beginning of February compared to the weeks before this date. In the second week of February, this difference reached its peak, with about three times the number of NFTs minted compared to five months prior