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Solana [SOL] Ranks Second by NFT Volume, but this Might be Transitory

Over the previous 30 days, Solana has performed well in the NFT market. According to Delphi Digital data, Solana surpassed the majority of cryptocurrencies in terms of NFT volume, finishing second.

Despite this outstanding performance, a drop in transaction volume and the migration of key NFT collections to other chains could constitute a substantial threat to Solana’s supremacy in the NFT industry.

The proliferation of Blue chip NFTs in Solana’s ecosystem has been one of the primary elements leading to the company’s success in the NFT market.

Their rise has been tremendous, especially given the large number of investors that have flocked to the Solana marketplace to purchase these assets.

Despite the fact that these Blue-chip index NFTs were increasing in volume, the majority of the Blue chip index’s increase was driven by NFT collections such as DeGods and y00ts.

Unfortunately, these collections are about to be migrated to Polygon. This could be a source of concern for the Solana NFT ecosystem, indicating a drop in user interest.

Another factor contributing to the decline in interest in Solana’s NFT environment was the decrease in the number of traders. According to NFTGO data, the number of traders has dropped from 5,235 to 2,405 in the last few weeks.

According to Dune Analytics, the decline had an impact on the amount of transactions made on the Solana network.

Furthermore, the decrease in activity on Solana’s dApps suggested a decrease in interest in the ecosystem. Popular dApps such as Magic Eden, Raydium, and Saber have all seen a decrease in unique active wallets, according to Dapp Radar.

In the last week, all of these dApps saw a 20% decrease in the number of unique active wallets on their site. Magic Eden, one of the main NFT marketplaces on Solana, saw a 12.77% drop in volume. At the time of publication, the total volume on the dApp was roughly $21.37 million.

Meanwhile, the volume of the Solana token has increased in recent days. Although Solana’s volume increased, its development activity decreased, implying that the number of additions on its GitHub had decreased.

Having said that, at the time of publication, the SOL was priced at $25.20, up 1.14% in the previous 24 hours.

 

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