Solana NFTs: Analyzing the way ahead

16 July 2023

in NFT

Reading Time: 6 mins read

Ev.io, GGSG, and SolPunks were the top three NFT collections on the blockchain over the last 30 days.
Most market indicators continued to remain bullish on SOL.

Since the beginning of the year, Solana [SOL] has taken multiple blows to its NFT ecosystem. For starters, SOL has witnessed quite a few top-selling NFT collections, including y00ts, migrating to other blockchains.

Realistic or not, here’s SOL market cap in BTC‘s terms

However, over the last few months, SOL has launched quite a few new features that have the potential to turn the table in the blockchain’s favor. While this happened, SOL bulls entered the market robustly as the token’s price went up over the last week in double digits.

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CRYPTOSLAM’s data revealed that over the last 30 days, the blockchain’s total NFT sales volume had increased by more than 80%. Not only that, but the number of transactions also went up by over 50%, which looked promising.

Surprisingly, despite the uptick in sales volume and transactions, the number of sellers declined over the last month.

Source: CRYPTOSLAM

Major contributors to this hike in metrics can be attributed to the popular NFT collections on Solana. As per DappRadar, Ev.io, GGSG, and SolPunks were the top three NFT collections on the blockchain over the last 30 days.

In addition, Teng Yang recently posted a tweet highlighting SOL NFT’s potential, which could reflect on paper in the months to come.

WHY SOLANA

I had my reservations initially, but diving deep into the @solana NFT ecosystem turned me into a SOL supporter late last year.

I was surprised to find a real, passionate community & ecosystem on SOL. Which is quite separate from the EVM ecosystem which often shares… pic.twitter.com/bwvLugO4Yz

— Teng Yan ⛩ (@0xPrismatic) July 14, 2023

As per the tweet, one of the most promising features was Solana’s NFT compression. Compressed NFTs are Solana NFTs that store their data in a Merkle tree structure, as opposed to totally on-chain like normal NFTs.

Though the new feature might have helped Solana NFTs gain traction, things have changed in the last few weeks. As per Santiment’s chart, after spiking on 27 June, the network’s total NFT trade counts declined.

The same trend was also seen in terms of SOL’s total NFT trade volume in USD, which looked concerning.

Source: Santiment

Solana investors are rejoicing

While the NFT ecosystem has concerns to tackle, the token’s price action has turned bullish. As per CoinMarketCap, SOL’s price increased by over 30% in the last seven days. At press time, it was trading at $28.92, with a market capitalization of over $11 billion.

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A look at SOL’s daily chart suggested that the uptrend might continue. For instance, the MACD’s data revealed buyers’ upper hand in the market. Solana’s Exponential Moving Average (EMA) Ribbon also displayed a bullish crossover, increasing the chances of a continued price uptick.

However, its Money Flow Index (MFI) was in the overbought zone, which can increase selling pressure on the token.