Solana NFT sales have been solid, but activity in the chain is down
Nonfungible token (NFT) activity on the Solana network has remained positive despite the recent FTX imbroglio.
According to analysis by the institutional research firm Delphi Digital, Solana has become the number two ecosystem for NFTs.
30-day sales volume calculation has topped $50 million, according to Cryptoslam data. Other NFT networks such as ImmutableX, Cardano, Polygon, Flow and BNB Chain are far behind. As of December 8, Solana NFTs had $60 million in 30-day sales volume, which is more than 4 times the next ecosystem, ImmutableX.
However, Ethereum still leads the NFT market by a huge margin. 30-day NFT sales volume on Ethereum was around $400 million, according to the data.
Furthermore, NFT sales have been crushed this year amid a broader downturn in the crypto asset market.
Solana into 2023
Solana aficionados have proclaimed a great year for the ecosystem, but the reality may be quite different.
Compressed NFT performance can be a big deal for web3 game studios. This means they can create thousands of in-game NFTs for very little on the Solana network.
Furthermore, a number of game titles are set to be released on Solana next year. The launch of the Saga Solana-based phone will also be a pivotal moment for the ecosystem, said Solana Ventures investor Justin Barlow.
However, DeFi on the network has taken a massive hit in 2023. The total value locked on Solana has collapsed by 96% since the beginning of this year. TVL is currently at a paltry $248 million, according to DeFiLlama.
Furthermore, activity on the chain has generally collapsed, as reported by BeInCrypto. Transactions, active addresses and wallets have all decreased significantly in recent months.
All this has been reflected in the depressed SOL prices.
SOL Price outlook
Solana’s SOL coin has traded unevenly over the past 24 hours, changing hands for just under $12 at press time.
SOL has been in a solid downtrend for several weeks and has lost 14.5% in the last seven days. Furthermore, the coin is currently down 95.4% from its high peak price of $260 in November 2021.
The memes were already appearing on crypto-Twitter.
The other asset associated with FTX, FTT, has been pumping today on the news of Sam Bankman-Fried’s bail. FTT rallied around 30% a few hours ago but has pulled back to around $0.959 at the time of writing.
Nevertheless, the exchange token was declared a security by the US SEC and is down 98.9% from its all-time high.
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