The Polygon ecosystem is all green, but does MATIC see red?

On December 11, Polygon’s [MATIC] GameFi ecosystem achieved another milestone when the blockchain partnered with Earn Alliance. The main goal of this new organisation was to “bring 100 million gamers to Web3.”

$MATIC JUST IN: Polygon and Earn Alliance Partners to Bring Next 100 Million Gamers to Web3 👀🔥#Polygon #Top3 🙌

— WEB3 Market Insight 🇦🇺 (@iftikharpost) December 11, 2022

Through this collaboration, Earn Alliance will take advantage of the Polygon network’s low gas fees, quick translation times, and minimal carbon footprint to produce more immersive blockchain gaming experiences.

Polygon NFTs grow as well

Polygon grew not just in the GameFi space, but also in its NFT ecosystem. In a tweet dated 10 December, Sandeep Nailwal, co-founder of Polygon, revealed that the company’s NFT buyers were “growing exponentially.”

NFT buyers on @0xPolygon are growing exponentially. An NFT supercycle is brewing on Polygon.

Source : @nansen_ai

PS: Saw some HUGE discrepancies on @cryptoslamio data as they dont index many Polygon apps. We escalated to them again. Posting new bigquery based dashboard shortly

— Sandeep | Polygon 💜🔝3️⃣ (@sandeepnailwal) December 10, 2022

Santiment’s chart revealed that Polygon’s total NFT trade count spiked last week. The total NFT trade volume followed a similar path and rose on 6 December. However, the figure declined over the last few days.

Source: Santiment

Moreover, Polygon’s users per week followed a similar trend and registered an uptick over the past few months. This was yet another optimistic update for the blockchain.

Is the crypto winter to blame?

Despite the aforementioned developments, MATIC‘s weekly growth was negative. According to CoinMarketCap, MATIC was down by 5% over the last week. At the time of writing, was trading at $0.8858 with a market capitalization of $7,736,492,248.

The blockchain’s on-chain metrics also shed some light on the current scenario. MATIC’s Market Value to Realized Value (MVRV) Ratio declined considerably over the past week. This was a massive bearish indicator. The blockchain’s network growth also plummeted on 12 December.

Source: Santiment

However, CryptoQuant’s data provided some relief to the investors, as it indicated a price increment on the horizon. MATIC’s exchange reserve decreased, which was a bullish signal as it indicated less selling pressure.

Furthermore, the number of active addresses and transfer volume also registered a spike. Interestingly, MATIC remained popular in the crypto space despite its negative price action. The altcoin managed to top the list of cryptocurrencies in terms of social activity on 11 December.

⚡️TOP @0xPolygon Ecosystem Coins by Social Activity

— 🇺🇦 CryptoDep #StandWithUkraine 🇺🇦 (@Crypto_Dep) December 11, 2022

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