Solana
Solana NFT: Traders up 111%, but sales are down – Why?
- The number of NFT traders on Solana recently reached a multi-month high.
- The steady decline in the price of SOL has led to a decline in NFT sales volume.
The daily count of non-fungible token [NFT] traders on Solana [SOL] hit a multi-month high on May 8, according to data from CryptoSlam watch.
According to NFT data tracking, 123,426 traders executed sales of at least one Solana-based NFT that day. This is a 111% rally from the 58,405 NFT traders on the network recorded the day before.
Source: CryptoSlam
However, despite the increase in the number of NFT traders, NFT sales volume on Solana fell by 16% on May 8. On that day, the US dollar value of all Solana-based NFTs sold was $3.01 million.
On May 7, it exceeded $3.5 million.
This drop in sales volume is due to the steady decline in the value of SOL over the past few days. According to CoinMarketCap According to the data, the coin’s value dropped by 7% between May 7 and 8.
At press time, SOL was trading at $143.04.
While a drop in the price of SOL may make creating and purchasing NFTs on Solana more affordable, it may not result in the same total expenses as before.
Additionally, with SOL’s low price action, investors who purchased SOL-based NFTs for potential appreciation in SOL’s value may be hesitant to sell.
This could lead to a decrease in high-value NFT purchases, which would impact overall sales volume.
State of the NFT market
An assessment of the performance of the general NFT ecosystem revealed a decline over the past 30 days, reflecting the downward trend of the general cryptocurrency market.
According to CoinGecko According to data, the global cryptocurrency market capitalization plunged 15% last month. At press time, that was $2.4 trillion.
According to NFTGo According to the data, NFT sales volume during this period totaled $488 million and decreased by 29%.
Due to the decline in trading activity, the NFT market capitalization has fallen. At $17.28 billion at press time, that amount has fallen 15% over the past 30 days.
Source: NFTGo
Read by Solana [SOL] Price prediction 2024-25
During this period, the number of NFT traders fell by 9.5%.
According to NFTGo data, the total number of unique addresses that bought or sold at least one NFT from one of the tracked NFT collections over the past month was 107,000.