- Solana’s dominance in the NFT market has been challenged by declining transactions and migrations.
- User interest has also declined in the ecosystem. However, SOL tokens were not affected.
Solana has performed well in the NFT market over the past 30 days. According to data provided by Delphi Digital, Solana has managed to secure the second place, surpassing most cryptocurrencies in terms of his NFT volume.
However, despite this impressive performance, the declining number of transactions and the migration of major NFT collections to other chains could pose a significant threat to Solana’s dominance in the NFT market.
Is Your Portfolio Green?check out Solana Profit Calculator
Top Chains by NFT Volume (30 days)
🥇@Ethereum
🥈@solana
🥉@0xpolygon
4️⃣@immutable
5️⃣@cardano
6️⃣@flow_blockchain
7️⃣@BNB chain pic.twitter.com/trNHUxk1fB— Delphi Digital (@Delphi_Digital) January 21, 2023
eat blue chips
One of the key factors in Solana’s success in the NFT market is the growth of quality NFTs in its ecosystem.
The growth has been significant, especially given the fact that many investors are flocking to the Solana marketplace to purchase these assets.
However, while these high quality index NFTs were growing, most of the high quality index volume was driven by NFT collections such as DeGods and y00ts.
Unfortunately, these collections are currently planning to migrate to Polygon. This may cause concern for the Solana NFT ecosystem and may indicate a decline in user interest.
Source: NFTGO
Another indicator of declining interest in Solana’s NFT ecosystem is the decline in the number of traders. According to data provided by NFTGO, the number of traders has dropped from 5,235 to 2,405 over the past few weeks.
Well, according to Dune Analytics, this fall has impacted the number of transactions made on the Solana network.
Source: Dune Analytics
moreover, Solanaof dApps also show declining interest in the ecosystem. According to Dapp Radar, popular dApps such as Magic Eden, Raydium and Saber are all seeing a decline in unique active wallets.
All of these dApps have seen a 20%+ drop in the number of unique active wallets on their platform in the past week. Magic Eden, one of Solana’s largest NFT marketplaces, observed his 12.77% decline in volume. At the time of writing, the overall volume of dApps was around $21.37 million.
Source: Dapp Radar
Looking at the token
The Solana token, on the other hand, has observed a surge in volume over the past few days.While Solana’s volume continued to grow, its development activity declined. This suggests that the number of contributions made on GitHub has decreased.
Read the Solana Price Prediction 2023-2024
Source: Santimento
That being said, at press time, the price of SOL was at $25.20 after gaining 1.14% over the past 24 hours.
