Increase in Solana NFT Volume: Impact on SOL's Market Performance

  • Solana NFT volume overtakes Bitcoin and Ethereum.
  • DEX volumes on the network continued to decline.

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 are on the rise

According to recent data, Solana outperformed both Bitcoins [BTC] and ethereum[ETH] In terms of unique NFTs traded in the last month.

Screenshot 2024 05 12 at 3.02.04%E2%80%AFPM


However, NFT volume was not being driven by blue chip collections on the Solana network.

Popular projects like Mad Lads, Solana Monkey Business, and Kleisurez saw their floor prices drop over the past week.

This indicates that NFT volume was driven by new NFTs that were being created on the Solana network that have not gained much popularity.

Screenshot 2024 05 12 at 3.05.10%E2%80%AFPM

Source: Solana Floors

The 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 perform in the long run.

In terms of DEX (decentralized exchange) volumes, the protocol saw a huge drop in activity, going from $4 billion to $1 billion in volume.

Despite the decline in DEX volumes, TVL (Total Value Locked) on the Solana network remained largely the same.

Screenshot 2024 05 12 at 3.24.17%E2%80%AFPM

Source: Artemis

How is the price of SOL?

At press time, SOL was trading at $144.93. Despite the popularity of Solana's NFTs and the overall health of the ecosystem, the price of SOL continued to decline.

SOL price has declined by 26.59% since April 1st. However, after breaking below the $161.28 level, SOL price started to consolidate.

The $161.28 level has been tested twice in the last few weeks and with the help of further bullish momentum, SOL price may again retest previously achieved levels.

Realistic or not, here is SOL's market cap in terms of BTC

Over the past few days, the CMF (Chaikin Money Flow) for SOL had increased over the past few days, indicating that money inflows into SOL have increased, which may lead to increased buying pressure in the future.

However, the RSI (Relative Strength Index) for SOL has declined over the past few days, indicating that the bullish momentum for SOL has diminished.

SOLUSDT 2024 05 12 15 30 12

Source: TradingView

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