On August 2nd, Mojo Melee, an NFT game project based on the Polygon network, announced a six-month partnership with global tech and e-commerce giant Amazon. On-chain data analysis explores how the Amazon partnership could affect the price of MATIC as NFT trading volume surges.
Amazon Prime subscribers can now earn a free NFT in Mojo Melee, an NFT-based game project built on the Polygon network. Recent data shows that Amazon has over 200 million subscribers worldwide.
Investors in Polygon (MATIC) with such a large subscriber pool are hopeful that the Amazon partnership can increase the adoption of Web3 technology and demand for the Polygon network.
According to past on-chain data, the NFT trading partnership with Amazon could potentially boost the price of MATIC. Following a week-long downward trend, MATIC has been on an upward trajectory since the announcement of the Amazon partnership for NFT transactions.
As shown below, the Polygon NFT Transaction Volume (under $1000) dropped from 10,523 on July 26th to 2,668 on August 2nd, a decrease of 75%. Since the announcement, the transaction count has increased to over 4,400 and 4,800 in the past two days, respectively.
NFT Transaction Volume evaluates the daily volume of NFTs worth less than $1000 traded on a blockchain network. Growing demand for NFTs generally translates to a rise in the underlying token for several reasons.
Essentially, users burn a small amount of MATIC as a transaction fee to mint NFTs on the Polygon network. This removes them from circulation and effectively reduces the supply of MATIC. Despite transaction fees being much lower compared to other projects like Ethereum, this ideally makes the MATIC blockchain network more attractive.
Not surprisingly, past data shows that sudden increases in Polygon NFT transaction volume are often associated with previous MATIC price increases.
By extrapolating results from these early signals on the blockchain network, the partnership between Amazon and Mojo Melee could potentially increase Polygon’s NFT trading volume.