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Solana: The NFT ecosystem is collapsing, while SOL is struggling, more internally

Solana: The NFT ecosystem is collapsing, while SOL is struggling, more internally
  • Solana ranked second on the list of blockchains in terms of total NFT sales.
  • SOL's reaction has been negative, as has its performance on the metrics front.

The Solana [SOL] Non-Fungible Token [NFT] ecosystem has flashed alarm bells over the past week as it registered a decline. According to Dune Analytics, the number of daily active users of the Solana NFT Marketplace has been steadily decreasing since the first week of February. The same trend was shown on the Santiment chart as the total number and volume of NFT Solana trades decreased over the past 30 days.

Interestingly, despite the drop, Solana remains slightly behind Ethereum [ETH] in the list of top blockchains by NFT sales volume in the last 30 days with $97 million in sales.

However, in good news, Solana Mobile has announced that it will soon be launching a new app that could push Solana's growing NFT ecosystem. Solana Mobile has launched Minty Fresh, an NFT coining app that allows anyone to easily mint NFT from their Saga.

However, SOL does not respond

While the aforementioned update gave hope for growth in the NFT space, however, SOL did not respond to it. According to CoinMarketCapSOL has registered a price drop of more than 2.8% in the last 24 hours, and at the time of writing it was trading at $23.78 with a market capitalization of $8.9 billion.


A look at SOL's network metrics gave even more cause for concern. For example, Binance and DyDx SOL funding rates have declined over the past few days, indicating less demand from the derivatives market. SOL development activity has also decreased over the past week, which is a negative sign for the network.

Not only that, but weighted sentiment remained consistently negative, reflecting a lack of investor confidence.