Solana’s NFT spot may recover soon, but SOL’s problems are far from over
- Compressed NFTs will soon launch on Solana, Solflare Wallet tweeted.
- A few calculations related to NFTs looked promising, but SOL has a number of roadblocks ahead of it.
Solana’s [SOL] current state of the NFT market was not the best, with large pools like y00ts migrating to Polygon [MATIC].
y00ts, which was the top traded Solana NFT pool this past week, has recently completed over 75% of its migration to Polygon.
Most sold NFT collectibles at Solana last 7 days 🔥
🥇 @y00tsNFT
🥈 @DeGodsNFT
🥉 @oogyNFT@Claynosaurz@HGESOL@FamousFoxFed@TheBastards_xyz @WolfCapital_@THELILYNFT#TransdimensionalFox@MagicEden #Solana $SOL pic.twitter.com/GPXWyPmbpy— Solana Daily (@solana_daily) March 29, 2023
The migration was not particularly pleasant news for Solana, which has already suffered from declining NFT transaction numbers and volume, as suggested by Dune’s data.
Source: Dune
Read Solana’s [SOL] Price prediction 2023-24
A game changer for Solana NFTs?
In the midst of this chaos, a major announcement was made on March 31, which had the potential to turn the tables. Solanahis favor in the coming months. Solflare announced that compressed NFT will soon launch on Solana, which will play a key role in the scalability of NFTs.
🔥 Compressed NFTs, HUGE value 🔥
Happy to announce that Compressed NFTs are LIVE in Solflare Extension!
We can’t wait to see what the next chapter of @solana NFTs will bring to us all – and are proud that Solflare users are always at the forefront 🙌 pic.twitter.com/9yWKwk13ep
— Solflare Wallet (@solflare_wallet) 30 March 2023
Compressing NFTs will drastically reduce the cost and storage requirements of creating and storing NFTs on the Solana network. Solana Labs developed compression for NFTs to serve Web2 and Web3 enterprise customers looking to enable millions or even billions of users.
These looked like signs of revival
It was interesting to see that a few of the NFT readings looked positive for the ecosystem. For example, Solana The NFT marketplace’s volume registered an increase in recent days, indicating more users on the network.
Source: Dune
CRYPTOSLAM’s data highlighted that Solana’s NFT sales volume was up more than 60% in the last 24 hours. There was also a corresponding increase in the number of buyers.
The number of additional buyers was also evident from Santiment’s chart, which suggested an increase in “amount of unique addresses purchased less than 1k USD by NFTs”.
Source: Sentiment
Realistic or not, here it is SOL market value in BTC terms
SOL may not be able to take advantage of this
SOL’s NFT space showed signs of improvement, but the original token might not have much merit. As per CoinMarketCapSOL’s price fell by over 6% in the past week, thanks to the bearish market conditions.
At press time, SOL was trading at $20.32, with a market capitalization of more than $7.8 billion. LunarCrush’s data revealed that bullish sentiment around SOL fell sharply last week, increasing the chances of a continued downtrend.
The same possibility was further established as SUNAltRank increased, which was a bearish signal. Solana’s Binance funding rate also fell sharply, indicating reduced demand in the futures market.
Source: Sentiment
