MATIC Trading Volume Drops by 50% Despite Price Resurgence

MATIC's Sentiment Index plunges further into negativity, signaling a challenging trend. On a brighter note, Polygon's NFT market thrives, boasting $90 million in sales for January alone.

Matic Trading Volume Drops By 50% Despite Price Resurgence_65b976fad74bc.webp

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.

matic trading volume drops by 50 despite price resurgence 65b976fadb138

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.

matic trading volume drops by 50 despite price resurgence 65b976fae5292

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).

matic trading volume drops by 50 despite price resurgence 65b976faf26c3

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.

(100 votes)

5.0/5

(100 votes)

Latest

21shares Files For Hype Etf, While Bitwise’s Solana Etf Records

News | Altcoin | Editor Choice

21Shares Files for HYPE ETF, While Bitwise’s Solana ETF Records

The crypto ETF market is heating up as 21Shares and Bitwise roll out new products, signaling Wall Street’s growing interest in altcoins.

Bitcoin Eyes A Hopeful November Amid Fed Division On December Rate Cut

News | Bitcoin | Editor Choice

Bitcoin Eyes a Hopeful November Amid Fed Division on December Rate Cut

Following the Federal Reserve’s widely expected rate cut, the crypto market has yet to show signs of recovery as internal divisions over a potential December easing weigh on sentiment, making Bitcoin’s short-term outlook more cautious than ever.

Ethereum’s Key Changes After The Fusaka Upgrade

News | Altcoin | Editor Choice

Ethereum’s Key Changes After the Fusaka Upgrade

The Fusaka upgrade marks a pivotal step in Ethereum’s journey toward large-scale scalability, promising faster transaction speeds, enhanced security, and laying the foundation for the next explosive phase of the world’s leading blockchain.

How To Join The Metamask Airdrop 

Airdrops | Editor Choice

How to Join the MetaMask Airdrop 

Join the Metamask airdrop hunt, the most popular blockchain wallet in crypto is having a 90-day point earning program.

Binance Delists 3 Altcoins, Prices Instantly Swing

News | Altcoin | Editor Choice

Binance Delists 3 Altcoins, Prices Instantly Swing

Binance’s unexpected decision to delist three altcoins — FLM, KDA, and PERP — has sent shockwaves through the crypto market, triggering intense volatility. Yet, in a surprising twist, FLM surged, defying all conventional market logic.

Screenshot 2025 10 20 091338