What happened to Polygon’s massive NFT ecosystem?

1 year ago

This clip 1 twelvemonth ago, Polygon was the 2nd largest concatenation for the fig of NFT users, which Footprint Analytics counts arsenic a wallet code that has bought oregon sold an NFT plus astatine slightest erstwhile successful the erstwhile month.

By increasing from astir zero percent of the marketplace stock of NFT users to 48% successful conscionable 6 months, it appeared similar Polygon could easy go the ascendant concatenation for NFTs.

But since the commencement of the carnivore market, the concern has changed, with Solana becoming the 2nd astir important ecosystem for integer assets.

Note: The supra illustration does not see transactions successful Element, a marketplace which has go a large unit for Polygon, meaning that it does not accurately correspond the fig of Polygon NFT users currently. It is inactive valid to spot the maturation of Solana.

Polygon’s NFT collections, the bulk of which are listed connected OpenSea, Aavengotchi and Element Market, are present little traded and marque up a smaller percent of the marketplace than before. Significantly much users commercialized connected Ethereum and Solana.

# of Marketplace Collections by Chain Note: Footprint is presently moving to adhd much marketplaces, e.g. Element and Playdapp Marketplace, which are fashionable for Polygon collections.

# of Active Collections by Chain Over Time

Why did Polygon’s NFT ecosystem adoption detonate a twelvemonth ago?

Polygon was launched successful 2017 arsenic a blockchain scaling solution for Ethereum. Using a modified proof-of-stake consensus, the protocol could process transactions rapidly and affordably compared to congested, costly Ethereum.

Around the opening of the past bull market, Layer 2s were the main contender for solving the occupation of blockchain scalability. Polygon was the starring innovative solution successful this class of products. To astir radical astatine the time, it was a harmless conjecture that Ethereum would stay the underlying infrastructure of the blockchain, with improvements built connected apical of it.

However, during the past year, the communicative shifted. Developers and analysts began foreseeing the anticipation of “Ethereum-killers”—new chains with their ain languages, statement mechanisms and technologies. Rather than attaching an HOV lane to a road to amended the travel of traffic, these caller projects promised to plan roads for caller usage cases, similar NFTs and GameFi, from the crushed up.

Solana launched successful 2019 and rapidly became a ascendant Ethereum-killer Layer 1. Crypto revolves astir hype cycles; it took respective of these for radical to travel astir to Solana.

The greenish dotted enactment is simply a baseline for searches for “polygon” the shape, which stay constant.

The illustration illustrates however Polygon was capable to usage its first-mover vantage to summation traction successful respective earlier hype cycles. While Polygon is inactive a solid, innovative protocol with an highly progressive task basal and beardown token performance, Solana inactive garners much interest.

NFT enthusiasts, and smaller creators especially, flocked to the upstart Solana ecosystem and its community-driven marketplace, Magic Eden.

This exodus from Polygon to Solana becomes evident erstwhile comparing OpenSea transaction information from the 2 chains from the aforesaid play side-by-side.

Summary

Polygon is inactive doing astonishing things successful Web3, but it’s wide that it is nary longer the apical prime aft Ethereum for NFT projects. While immoderate of the supra charts bash not amusement the afloat representation (which looks somewhat amended for Polygon erstwhile Element Marketplace and Playdapp Marketplace are included), it is wide that Solana has attracted astir of the hype successful the NFT industry.

This portion is contributed by the Footprint Analytics assemblage successful October 2022 by: [email protected].

The Footprint Community is simply a spot wherever information and crypto enthusiasts worldwide assistance each different recognize and summation insights astir Web3, the metaverse, DeFi, GameFi, oregon immoderate different country of the fledgling satellite of blockchain. Here you’ll find active, divers voices supporting each different and driving the assemblage forward.

Source: OpenSea Ethereum – Polygon – Solana