Solana NFT Marketplace has seen less active users lately
Competition is increasing as the number of NFT marketplaces increases. Recent or widespread market developments may have an impact on the Solana NFT ecosystem.
According to data provided by Dune Analytics, the number of people using the Solana NFT marketplace each day has been steadily decreasing since the first week of February.
A lot of money has been made in the NFT industry lately, and that means the market is expanding exponentially. NonFungible.com estimated the NFT market in 2020 to be over $250 million.
Nevertheless, the NFT market increased significantly in the first quarter of 2021, reaching over $2 billion.
Is Solana draining the NFT ecosystem?
Still, Solana’s NFT marketplace has a lot of catching up to do if it is to remain even marginally relevant, let alone competitive.
Like the rest of the market, the network has been in a downward trend lately. Prices for SOL have hovered around $23.65, indicating that buying pressure is beginning to ease.
According to cryptocurrency market cap Coingecko, SOL has lost about 3% of its value in the last 24 hours. Further selling pressure on the market is to be expected from this point.
Analysts believe that for SOL’s market cap of around $9 billion to continue to rise, the stock must first break above the resistance level of $23.20, and then the barrier level of $24.75.
What is the impact on the SOL price?
The price of SOL has increased by 24% since February 13th, and the SOL price boom has continued unabated despite a decline in user activity on the Solana blockchain. Since the beginning of 2023, the crypto has increased by 163%.
SOL can add to its 2023 gains and perhaps see further growth in the first quarter of this year thanks to new optimistic events in the ecosystem.
Source: Santiment
Solana’s overall NFT trading numbers and volume have decreased over the past 30 days, reflecting the decrease in Solana’s daily active users which is also seen in a graphic provided by Santiment.
Financing rates also down
Likewise, looking at the chain data for SOL revealed even greater cause for concern. In recent days, funding rates on both Binance and DyDx, where SOL is listed, have fallen.
This falling demand is a sign that the derivatives market is slowing down. Furthermore, the development activity at SOL has decreased in the last week, which is bad news for the network.
Meanwhile, the SOL network made a positive announcement that the Helium Network was moving to the Solana blockchain.
The Helium Network is a blockchain that uses a decentralized worldwide network of devices as hotspots to connect everything to the internet at a faster and more affordable speed.
SOL total market cap at $8.9 billion on the daily chart | Chart: TradingView.com
Helium moves to Solana
Around the end of March 2023, Helium will make the transition from its current Layer 1 blockchain to Solana, bringing with it approximately 1 million hotspots across the globe as well as the 5G network.
Top 10 Blockchains by NFT Sales Volume Last 30D 🚀
🥇 $ETH @ethereum
🥈 $SOL @solana
🥉 $MATIC @polygon$IMX @Unchangeable$ADA @Cardano$FLOW @flow_blockchain$BNB @binance@ArbitrumRON @Ronin_Network$WAXP @WAX_io@cryptoslamio #Solana $SOL pic.twitter.com/ixqKCMREbf— Solana Daily (@solana_daily) 22 February 2023
Although it saw a drop in the number of daily active users on the NFT ecosystem, the ecosystem maintained a sales volume of $97 million in the last 30 days, placing it second only to Ethereum [ETH] among the best blockchains.
– Selected image from Thuswesee.com
