Solana’s latest update could do wonders for SOL, but not with this obstacle around

• Metaplex paves the way for higher demand for SOL NFTs in 2023
• SOL investors can pay close attention to indicators to look for selling opportunities

Things could be about to get a lot more interesting for Solana [SOL] and its NFTs. This is thanks to a recent announcement from NFT platform Metaplex. The latter announced a new upgrade that will make it possible to enforce royalties.

Read Solanas [SOL] price forecast 2023-2024

The Metaplex announcement means Solana could become more attractive to NFT creators in 2023, and here’s why. NFT creators can earn a portion of the profits every time an NFT created finds a new buyer. Metaplex plans to introduce the same feature for Solana NFTs.

1/ Big Friday update on royalties 🎉

Creators will be able to start upgrading existing NFT collections starting next week and enable enforcement of royalties

Here’s what you need to know to prepare yourself 👇 pic.twitter.com/A2MZALiwHB

— Metaplex (@metaplex) 30 December 2022

According to the announcement, NFT creators can implement the upgrade from January 6. Doing this will allow them to implement royalties and even implement optional rulesets for their royalties.

One of the potential benefits of this move is that it will allow creators to earn more from their NFTs. This move could also encourage more creators to adopt the Solana blockchain as their go-to network for distributing their NFTs.

If the above happens, we may witness an increase in NFT trading volumes in 2023. Solana’s NFT trading volumes were heavily impacted by the bearish market conditions.

Zooming in on the performance in December reveals quite a bit of an increase in the last five days of December.

Source: Sentiment

It remains to be seen whether this move will actually have a positive impact on Solana NFT’s trading volumes, but in theory it should.

The same applies to the impact on SOL’s demand. Speaking of which, SOL delivered an unenthusiastic performance in the last six weeks. We’ve seen a drop in price volatility, but what can investors expect in 2023?

SOL flirts with the bulls

Solana experienced an increase in social volume towards the end of December. This means that SOL may be exposed to more visibility when social volumes increase.

Source: Sentiment

Also worth noting is the timing of this social volume increase. It happened around the same time that SOL dived into oversold territory.

SOL’s price action has so far struggled to leave oversold territory, meaning that the existing demand was not enough to support a significant pivot.

Source: TradingView

We are seeing an increase in money insight as indicated by the Money Flow Index (MFI). Perhaps this accumulation has limited the previously existing bearish momentum. We could see some upside if SOL can attract significant bullish volumes over the next few days.

Is your SOL inventory flashing green? Check the profit calculator.

Fortunately, there are already signs that SOL’s demand is recovering. Both Binance and DYDX funding rates saw their sharpest declines in late December.

Nevertheless, a strong rise was seen in the last 24 hours.

Source: Sentiment

Furthermore, the chart above indicated that demand in the derivatives market was recovering as investors could be seen taking advantage of the discount.

SOL investors should keep an eye on metrics that could indicate a resurgence in spot demand and bullish volumes.