- Polygon outperformed Ethereum in NFT transactions, solidifying its layer 2 position.
- Despite growth in the NFT market, the network faced declining dApp activity and token volume.
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.
The number of Polygon NFT transactions in January exceeded Ethereum NFT for the second consecutive month, but the average transaction fee was much lower. Various data of the NFT lending ecosystem have hit record highs, with BendDAO’s borrowing volume exceeding $36 million.
— Wu Blockchain (@WuBlockchain) February 1, 2023
Read Polygon’s [MATIC] Price Prediction 2023-2024
The Polygon NFT market has been growing, and even though the number of transactions has been high, the average fees generated by these transactions were low.
The low fees could affect the network’s overall ability to generate revenue, however, it…