Polygon outpaces Ethereum in NFT transactions, but challenges loom ahead

Polygon MATIC, a layer 2 scaling solution for Ethereum ETH, has been outperforming the latter in terms of the number of NFT transactions made on each protocol. Moreover, the increasing NFT transactions are strengthening Polygon's position in the layer 2 space.

Timeline of Polygon

Polygon investors enjoyed this month as its native token MATIC made overwhelming price momentum since the start of the new year. MATIC price has brought an ROI of over 40% in just two weeks, awakening bullish expectations among traders after a prolonged bearish trend.

As part of its plans to expand its impact in the crypto sector, Polygon [MATIC] secured a partnership with Hamilton Lane per its $2.1 billion tokenization flagship fund. In October 2022, the investment firm announced that it planned on tokenizing three of its funds, along with its digital asset partner Securitize.

The investment management company Hamilton Lane, which oversees and manages a total of $824 billion worth of assets, recently established the first of three tokenized funds that it had previously said it would establish in an attempt to broaden the pool of investors who have access to private markets.

A pseudonymous Twitter account has revealed that a single-wallet address has seen significant gains with Polygon (CRYPTO: MATIC). What Happened: A Polygon whale earned 6,090% gains over a 3-year period with its MATIC holdings.

Key Points: Despite the positive performance of numerous cryptocurrencies this month, Polygon's native currency is set to end January as a noticeable standout. According to Coinmarketcap data, MATIC is up 19.28% in the last week to $1.19, bringing the token's gains in January 53%.

Key Points: An expert who predicted the end of Bitcoin's (BTC) bull market last year is forecasting gains for Polygon (MATIC), a blockchain scaling solution, and Avalanche, a smart contract platform (AVAX). Pentoshi, a pseudonymous expert, informs that MATIC appears bullish and could be preparing for a rise toward a key resistance level.

Polygon's native token, MATIC, and the Mina Protocol token are up more than 18% as the week draws to a close. Their growth would seem to be in harmony with the general market environment, but it could be argued that a number of investors are buying these tokens based on a particular narrative.

An early MATIC whale makes an unexpected move by selling millions worth of tokens amid the massive rise of the asset on the market. In exchange for Polygon's token, the whale grabs some DAI.

Polygon [MATIC] became a hot topic of discussion in the crypto space as its price pumped at an unprecedented rate. CoinMarketCap's data revealed that MATIC registered double digit growth last week, which helped it re-enter the top 10 club.

Amid the ubiquitous rally in the crypto market, multiple crypto assets including MATIC have climbed higher highs, thriving to reach their peak and beyond. While the catalyst behind the rally might be unclear, Polygon's (MATIC) bullish trend could be a part of its upcoming zkEVM Network update.