Polygon [MATIC] rebounded by nearly 3% in the last 24 hours, breaking free from a week-long decline that saw the cryptocurrency shedding 9.7% of its market value, based on CoinMarketCap data. However, appearances can be deceiving.
Contrary to expectations, MATIC’s USD trading volumes plunged by over 50% during the same timeframe, according to AZC News’s analysis of Santiment data. Traditionally, diminished trading volumes in an upward market trend are perceived as bearish signals, indicating a lack of interest from traders to acquire the asset.
Furthermore, a decrease in volume during an uptrend might suggest that it’s time to sell and secure profits. It’s essential to note that this information is not to be construed as market advice, and readers were advised to conduct thorough research before making any financial decisions.
The Weighted Sentiment also extended its decline into negative territory, reinforcing the bearish narrative surrounding MATIC. Derivatives traders are losing interest in MATIC as well.
MATIC Loses Favor Among Derivatives Traders
Speculative interest in MATIC has dwindled since the beginning of the year. Coinglass reports that the Open Interest (OI) in MATIC futures stood at $199 million at present, reflecting a 34% decline year-to-date (YTD).
Adding to the bearish sentiment, short positions for MATIC have consistently outnumbered long positions since the commencement of 2024. Certainly, the sentiment among derivatives traders regarding MATIC appears less optimistic at the time of this publication.
On a brighter note, Polygon’s NFT market paints a contrasting picture. As reported in a recent X post, the Polygon blockchain has witnessed impressive NFT sales, reaching $90 million in January alone – the highest monthly volume since April 2022.
NEW: Polygon has passed $90M in NFT sales volume for the month of January so far.
The highest monthly volume since April 2022. pic.twitter.com/0yiYfiwgFl
— Today In Polygon (@TodayInPolygon) January 20, 2024
Notably, Polygon has solidified its position as the fourth-largest blockchain for NFT trading over the past month, with sales surpassing $100 million, indicating a remarkable 70% increase compared to the previous month, according to CryptoSlam.
Related: Polygon [MATIC] Witnesses Surge in Developer Numbers
Earlier in the month, the layer-2 (L2) chain achieved a significant milestone by surpassing Ethereum [ETH] in 24-hour NFT sales for the first time. Driving this surge in Polygon’s NFT market is the success of collections from the Web3 game Gas Hero. Specifically, Gas Hero Common Heroes emerged as the second-most traded collection in the last month, generating sales exceeding $35 million.
