Solana NFT’s potential looks promising, but what’s in store for SOL?

• Solana NFT pins decreased over the last 30 days, as did the number of daily active users.
• However, SOL managed to perform well both on the price and calculation fronts.

A Twitter handle named Solana Legend recently posted a tweet that talked about the potential and possibilities of Solana’s [SOL] NFT ecosystem.

According to the tweet, Solana outperformed Ethereum in several aspects. This was something that could take the ecosystem to new heights.

One of the main advantages of Solana was the prices. Solana is the cheapest chain to drop NFTs. In comparison, the cost of deploying smart contracts on Ethereum is around $5000+, while it is $30 on Solana.

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0/ It’s a new era in NFTs 👇

Royalties went to 0 or optional on SOL’s main NFT marketplace @MagicEden for @open sea

A thread 🧵 on why Solana is iterating faster than Ethereum and will drive a lot of native innovation and outperform the ETH NFT market

This trend has already started

— Solana Legend 🎒 (@SolanaLegend) 18 February 2023

Not only in terms of prices, but Solana was also ahead of Ethereum in terms of the number of transactions. Although the NFT sales value remained higher for Ethereum, the average number of transactions per wallet was up to 10 times higher on Solana.

How much is 1.10.100 SOLs worth today?

Everything is not picture-perfect

Despite the Solana’s abilities, things did not work in its favor on the ground. Several datasets indicated that SOL’s NFT ecosystem failed to grow.

Furthermore, CRYPTOSLAM’s data revealed that Solana’s sales volume dropped by more than 57% in the last seven days. Moreover, the number of unique buyers and sellers has also registered a drop since January 2023.

Source: CRYPTOSLAM

Dune’s data also complemented CRYPTOSLAM, as it revealed that the Solana NFT marketplace’s daily active users recorded a decline in recent weeks.

However, Santiment’s chart looked optimistic for the network as it showed growth in total NFT trade numbers and USD trade volume over the past week.

Interestingly, while most of the NFT-related metrics were negative, growth was listed in the network’s DeFi space as TVL increased.

Source: Sentiment

Realistic or not, here it is SOL market cap in BTCs terms

The state of SOL this month

Solana’s performance on the price front appeared to favor investors as it registered a weekly gain of more than 12%. In accordance CoinMarketCapat the time of writing, SUN was valued at $23.58 with a market capitalization of over $8.9 billion.

The same applied to SOL’s calculations on the chain, which looked bullish. For example, SOL’s demand in the derivatives market increased, as indicated by the funding rates of Binance and DyDx.

Positive feelings all around SUN also increased, which reflects investors’ confidence in SOL.

Nevertheless, SOL’s development activity was worrying as it declined last week, which is mostly a negative signal.

Source: Sentiment