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Solana: Is this the only Reason Behind SOL’s Bull Rally? Unraveling…

When compared to other NFT ecosystem blockchains, Solana [SOL] performed better than all but Ethereum [ETH]. Solana Daily tweeted on January 19 that SOL had the second-highest monthly NFT sales volume among the top 10 blockchains. The remaining three were ImmutableX, Cardano [ADA], and Polygon [MATIC].

When looking at the volume of sales over the past month, DeGod has continued to be the most popular series, followed by y00t and Monkey Kingdom. Santiment’s graph shows that both the total number of NFT trades and the transaction volume in USD for Solana have increased over the past week, further demonstrating the NFT ecosystem’s growing popularity.

Solana’s developer community is expected to have more than 2,000 members by 2022, according to a recent report.

Solana’s encouraging rise over the past few weeks has pleased investors as the NFT market as a whole has expanded. According to data from CoinMarketCap, the price of SOL rose by 26% over the past week, making it the cryptocurrency with the most weekly price increase. As of this writing, SOL was trading at $21.17, giving the company a market cap of more than $7.8 billion.

Examining the daily chart for Solana provided insight into the positive developments that helped SOL. The 20-day Exponential Moving Average (EMA) ribbon crossed above the 55-day EMA, indicating bullish momentum. One possible explanation for Solana’s recent price gain is the rising Relative Strength Index (RSI) and Money Flow Index (MFI) during the past few weeks.

The on-chain metrics for Solana, on the other hand, painted a different picture, with most remaining negative during the past week. Take SOL as an example; the network’s development activity dropped significantly as a result of the developers’ reduced dedication to its upkeep.

As a result, SOL’s social dominance decreased, suggesting the token’s popularity was on the fall. The token’s value rose, but its volatility grew dramatically over a period of four weeks.

 

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