Solana
Solana NFT Volumes Increase: Impact on SOL Market Performance
- Solana NFT volumes have increased, surpassing Bitcoin and Ethereum.
- DEX volumes on the network have continued to decline.
THE Solana [SOL] The ecosystem has been one of the most successful ecosystems in the crypto space over the past few months. One reason for this would be the high volume of Solana NFTs.
Solana NFTs on the rise
According to recent data, Solana outperformed both Bitcoin [BTC] And Ethereum[ETH] in terms of unique NFTs traded over the past month.
Source:
However, NFT volume was not driven by top collections on the Solana network.
Popular projects such as Mad Lads, Solana Monkey Business, and Clayosaurrz have all seen a floor price drop over the past week.
This indicates that NFT volume was driven by new NFTs created on the Solana network that did not gain too much popularity.
Source: Etage Solana
Less interest and less popular NFTs indicate a healthy and thriving ecosystem.
However, Solana’s performance in other areas, such as the DeFi sector, is also important in determining how the protocol and its ecosystem behave in the long term.
In terms of DEX (Decentralized Exchange) volumes, the protocol had seen a massive decline in activity, going from $4 billion in volume to $1 billion.
Despite the decline in DEX volumes, the TVL (Total Value Locked) on the Solana network has remained largely the same.
Source: Artemis
How is the SOL price evolving?
At press time, SOL was trading at $144.93. Despite the popularity of Solana NFTs and the overall health of the ecosystem, the price of SOL has continued to decline.
Since April 1, the price of SOL has fallen by 26.59%. However, after falling below the $161.28 level, SOL price started to consolidate.
The $161.28 level has been tested twice over the past few weeks, and with further bullish momentum, SOL price may once again reach previously achieved levels.
Realistic or not, here it is Market capitalization of SOL in terms of BTC
Over the past few days, the CMF (Chaikin Money Flow) for SOL has surged, indicating that money flowing into SOL has increased, which may cause an increase in buying pressure in the future.
However, SOL’s RSI (Relative Strength Index) has fallen over the past few days, indicating that SOL’s bullish momentum has waned.
Source: TradingView