Blockchain News

Solana’s NFT space can recover soon, but SOL’s troubles are far from over

Solana’s [SOL] existing NFT market position was not ideal, with significant collections such as y00ts transferring to Polygon [MATIC]. y00ts, the most traded Solana NFT collection in the last week, has recently completed more than 75% of its move to Polygon.

The shift was bad news for Solana, which had already been hit by decreased NFT transaction count and volume, according to Dune’s data.

In the middle of this chaos, on March 31, a crucial news was made that had the potential to tip the scales in Solana’s favor in the coming months. Solflare revealed that compressed NFT will be available soon on Solana, which will play an important role in NFT scalability.

NFT compression will significantly lower the cost and storage needs for minting and storing NFTs in the Solana network. Solana Labs created compression for NFTs in order to serve Web2 and Web3 enterprise customers who want to activate millions, if not billions, of users.

It was intriguing to note that a couple of the NFT measures appeared to be beneficial to the ecosystem. For example, the volume of the Solana NFT marketplace has increased in recent days, indicating that there are more users on the network.

According to CRYPTOSLAM statistics, Solana’s NFT sales volume increased by more than 60% in the last 24 hours. Furthermore, the number of buyers increased in a similar manner.

More buyers were also obvious in Santiment’s graphic, which indicated an increase in the statistic ‘amount of unique addresses bought less than 1k USD of NFTs’.

SOL’s NFT area is showing signs of recovery, but the native token may not reap many benefits. According to CoinMarketCap, the price of SOL has dropped by more than 6% in the last week due to the adverse market conditions.

SOL was trading at $20.32 at the time of publication, with a market value of more than $7.8 billion. According to LunarCrush data, optimistic emotions towards SOL fell significantly last week, raising the likelihood of a sustained slump.

The same potential was strengthened as SOL’s AltRank climbed, indicating a negative indication. Solana’s Binance funding rate has also dropped significantly, indicating decreasing interest in the futures market.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.