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OpenSea Polygon Monthly Volume and Monthly NFTs Sold Set New Peaks Last Month, MATIC Down 7% Today

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Polygon's OpenSea activity hit new highs in January as the NFT marketplace posted an all-time high of $5 billion in trading volume. Data from blockchain analytics site Dune Analytics shows that Polygon contributed almost $80 million, whereas Ethereum accounted for the bulk of it at $4.95 billion. Though Polygon's contribution is significantly smaller, it represents an increase from December's $76 million figure.

Polygon's native token MATIC is moving in sync with the majority of the crypto assets in the market today. The token has shed over 7% in the last 24 hours and is changing hands at $1.52.

Polygon posted record NFT figures (active users and volume sales) in January

The volume of Polygon NFT sales recorded on OpenSea last month crossed $79.25 million, a record monthly figure for the Ethereum sidechain. Previously, Polygon had peaked at an NFT volume of $76 million in December.

OpenSea Polygon Monthly Volume. Source: Dune Analytics

The Polygon NFT ecosystem sold a record 2,685,757 tokens throughout January. This means that the blockchain scalability platform once again beat Ethereum on the number of NFTs sold on the platform. The 2.6 million NFTs sold last month surpassed December's sales figure of 1.9 million.

OpenSea Polygon Monthly NFTs sold. Source: Dune Analytics

Moreover, there were about 219k monthly active traders – those who participated in at least a single trade of a Polygon-hosted NFT. This figure translates to an increase of over 20% from December, when the chain had about 176k active users. The cumulative total of OpenSea Polygon users rose steadily over the course of the month from 827,500 on January 1 to almost 975,000 at the end of the month.

Total OpenSea Polygon Users Over Time. Source: Dune Analytics

The swell in the number of active users has been attributed to the entry of more brands into the Polygon NFT space. Last month, design company Adidas and luxury fashion house Prada teamed up in an NFT project dubbed Adidas for Prada Re-Source hosted on Polygon. The sale of LAND NFTs minted on Polygon through OpenSea and Division also played a role.

The record figures suggest that the adoption of Polygon in the NFT niche is growing. Popularity on OpenSea is especially significant as the marketplace is by far the largest mover in sales of NFTs.

Environmental concerns persist on NFT projects

At the end of January, Polygon confirmed that the imposing Lazy Lions NFT project had launched on its blockchain. The announcement came last Sunday as the Lazy Lions collection delivered its ‘roar map' for 2022.

Lazy Lions is an algorithmically generated collection of 10,000 unique NFTs that first launched on the Ethereum blockchain last August. The series sold out for $1.5 million in five hours at launch but has since seen the floor price rise significantly. The lions are customizable in over 160 different traits, including mane and expressions.

In addition, the World Wildlife Fund (WWF) UK announced on January 31 plans to launch 13 eco-friendly NFTs on the Polygon blockchain. The organization said that the collection, which debuted today, would include NFTs minted with each transaction having carbon emissions equal to that from a cup of water.

An image of one of the WWFTokensForNature NFTs. Source: Twitter

However, the whole idea has been met with resistance since the announcement. While WWF UK aims to raise funds to support conservation efforts and raise awareness on endangered species, including rhinos and orangutans, critics are worried about the potential energy use in NFT generation.

There are concerns over the resultant emissions, with the unamused threatening to cancel donations and call for the project's dissolution. On its end, the WWF UK reckons blockchain tech and its NFTs application is here to stay and could be used responsibly to generate funds.

 Polygon (MATIC) market performance

MATIC price is consolidating between $1.50 and $1.54 amid the latest market correction that has washed away gains from Tuesday and Wednesday.

MATIC/USD 7-day trading chart

At its current price of $1.54, MATIC is trading 47 % off its record high set in December as per data from CoinMarketCap. This is the second straight week the crypto token has traded below the $2.00 mark. Buyers and sellers appear to be watching from the sides, with both groups mulling over the best recourse.

To learn more about this token visit our Investing in Polygon guide.

Sam is a financial content specialist with a keen interest in the blockchain space. He has worked with several firms and media outlets in the Finance and Cybersecurity fields.