Rising Solana NFT trading volumes: impact on SOL market performance

  • Solana NFT volumes have surged, surpassing Bitcoin and Ethereum.
  • Live trading volumes on the network continued to decline.

Solana [SOL] The ecosystem has been one of the most successful in the cryptocurrency space over the past few months. One reason for this is the large size of Solana NFTs.

Solana NFTs are on the rise

According to recent data, Solana outperformed both Bitcoin [BTC] And Ethereum[ETH] In terms of unique NFTs that have been traded over the past month.

Source: X

However, NFT volume was not driven by major corporate groups on the Solana network.

Popular projects like Mad Lads, Solana Monkey Business and Clayosaurrz have seen their floor price drop over the past week.

This suggests that the NFT volume was driven by new NFTs created on the Solana network that did not gain much popularity.

Source: Solana Floor

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 will perform in the long term.

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

Although DEX volumes have decreased, TVL (total value locked) on the Solana network has remained largely the same.

Source: Artemis

How is SOL price?

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 has continued to decline.

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Since April 1, the price of SOL has fallen by 26.59%. However, after reaching below the $161.28 level, SOL price started to consolidate.

The $161.28 level has been tested twice in the past few weeks and with the help of more bullish momentum, SOL price could move back to the previously obtained levels.

Realistic or not, this is SOL’s market capitalization in terms of BTC

In the past few days, the CMF (Chaikin Money Flow) of SOL has risen in the past few days which indicates that the money flowing into SOL has risen which may cause increased buying pressure in the future.

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

Source: Trading View

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