- Solana’s NFT dominance has been challenged by declining transactions and migrations.
- The ecosystem has also seen a decrease in user interest; However, the SOL code was not affected.
Solana has been doing well in the NFT market over the past 30 days. According to Delphi Digital data, Solana has outperformed most cryptocurrencies in terms of NFT volume and managed to secure the second position.
However, despite this impressive performance, the decline in the number of transactions and the migration of large NFT pools to other chains could pose a significant threat to Solana’s dominance in the NFT market.
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Top Chains by NFT Volume (30 days)
Delphi_Digital January 21, 2023
Eat potato chips
One of the major factors contributing to Solana’s success in the NFT market has been the growth of Blue Chip NFTs in its ecosystem.
Well, their growth has been really great, especially considering that many investors have flocked to the Solana market to buy these assets.
However, while blue chip index NFT has grown, the majority of blue chip index volume has been driven by NFT groups like DeGods and y00ts.
Unfortunately, these groups are now planning to migrate to Polygon. This could be a cause for concern for the Solana NFT ecosystem and could indicate a decrease in user interest.
Another indicator behind the decline in interest in Solana’s NFT ecosystem was the drop in the number of traders. According to NFTGO data, the number of traders has dropped from 5,235 to 2,405 in recent weeks.
Now, the fall has had an impact on the number of transactions made on Solana’s network, according to Dune Analytics.
Additionally, the decrease in activity on Solana’s dApps indicates declining interest in the ecosystem as well. According to Dapp Radar, popular decentralized applications such as Magic Eden, Raydium, and Saber have seen a decline in unique active wallets.
All of these dApps have seen a drop of over 20% in the number of unique active wallets on their platform in the past week. Magic Eden, one of Solana’s largest NFT marketplaces, saw a 12.77% drop in volume. At the time of publication, the dApp has a total volume of approximately $21.37 million.
Consider the token
Meanwhile, Solana’s token has noticed an increase in volume over the past few days. Although Solana’s volume continued to increase, its development activity decreased, which indicates that the number of contributions made on GitHub has decreased.
Read Solana’s 2023-2024 price forecast
However, at the time of writing, the price of SOL is at $25.20 after rising by 1.14% in the last 24 hours.