Solana Becomes Second Largest NFT Ecosystem, Will SOL Prices React?
Nonfungible token (NFT) activity on the Solana network has remained positive despite the recent FTX imbroglio.
According to analysis by institutional research firm Delphi Digital, Solana has become the number two ecosystem for NFTs.
The 30-day sales volume metric has topped $50 million, according to Cryptoslam data. Other NFT networks such as ImmutableX, Cardano, Polygon, Flow, and BNB Chain are way behind. As of Dec. 8, Solana NFTs had $60 million in 30-day sales volume, which is more than 4x the next ecosystem, ImmutableX.
However, Ethereum still leads the NFT market by a huge margin. 30-day NFT sales volume on Ethereum was around $400 million, according to the data.
Furthermore, NFT sales have been crushed this year amid a broader crypto asset market slump.
Solana Into 2023
Solana aficionados have been touting a great year for the ecosystem, but the reality may be quite different.
Compressed NFT minting could be a big deal for web3 game studios. This means they can mint thousands of in-game NFTs for very little on the Solana network.
Furthermore, a number of game titles are set to be released on Solana next year. The launch of the Saga Solana-based phone will also be a pivotal moment for the ecosystem, said Solana Ventures investor Justin Barlow.
However, DeFi on the network has taken a massive hit in 2023. The total value locked on Solana has collapsed by 96% since the beginning of this year. TVL is a paltry $248 million at the moment, according to DeFiLlama.
Furthermore, on-chain activity, in general, has collapsed, as reported by BeInCrypto. Transactions, active addresses, and wallets have all decreased significantly over the past few months.
This has all been reflected in the depressed SOL prices.
SOL Price Outlook
Solana’s SOL coin has traded flat over the past 24 hours and was changing hands for just below $12 at the time of press.
SOL has been in a solid downtrend for several weeks and has lost 14.5% over the past seven days. Furthermore, the coin is currently down 95.4% from its lofty peak price of $260 in November 2021.
The memes were already cropping up on crypto Twitter.
The other asset associated with FTX, FTT, has pumped today on the news of Sam Bankman-Fried’s bail. FTT shot up around 30% a few hours ago but has retreated to around $0.959 at the time of writing.
Nevertheless, the exchange token was declared a security by the U.S. SEC and is down 98.9% from its all-time high.
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