What Caused the Surge in NFT Trading Volume on Solana?

Solana's NFT trading volumes soared, surpassing those of Bitcoin and Ethereum, while DEX volumes on the network saw a continued decline.

Azcnews What Caused The Surge In Nft Trading Volume On Solana

The Solana [SOL] ecosystem has become one of the biggest successes in the crypto space over the past few months, and one of the outstanding reasons is the significant growth of Solana NFTs.

According to the latest data, Solana has outpaced both Bitcoin [BTC] and Ethereum [ETH] in terms of unique NFTs traded over the past month. However, the growth in NFT volume is not due to blue chip collectibles on the Solana network.

Top Blockchain Nft
Top Blockchain Nft

Popular projects such as Mad Lads, Solana Monkey Business, Clayosaurrz all recorded significant floor price drops in the past week, suggesting that the growth in NFT volume is mainly coming from newly created NFTs on the Solana network that have not been popular. Interest in less popular NFTs also indicates a healthy and growing ecosystem.

However, Solana’s performance in other areas, such as the DeFi sector, also plays an important role in the sustainability assessment of the protocol and its ecosystem. As for decentralized exchange (DEX) volume, the protocol recorded a large decline in activity, from $4 billion to $1 billion.

Screenshot 2024 05 12 at 3.05.10%E2%80%AFPM

Source: Solana Floor

Despite the decrease in decentralized exchange (DEX) volume, the Total Value Locked (TVL) on the Solana network remains stable. Regarding the SOL price situation, at the time of writing, SOL is trading at 144.93 USD. Despite the popularity of Solana NFTs and the state of the overall ecosystem, SOL prices continue to decline.

Related: Solana Could Overthrow Ethereum This Week

Since April 1, SOL price has decreased by 26.59%. However, after falling below the $161.28 level, SOL price has begun to stabilize. The $161.28 price level has been tested twice in the past few weeks and with the help of further upside momentum, SOL price could once again reach the previous levels.

Screenshot 2024 05 12 at 3.24.17%E2%80%AFPM

Source: Artemis

In the last few days, Chaikin Money Flow (CMF) for SOL has increased sharply, suggesting that inflows into SOL are increasing strongly and could create a spike in buying pressure in the future. However, SOL’s RSI (Relative Strength Index) has dropped sharply over the past few days, showing that SOL’s upward momentum has weakened.

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  1. Avatar of Lil Fursh
    Lil Fursh

    Here are some possible reasons for the surge in NFT trading volume on Solana ¹ ² ³ ⁴:
    – New NFT projects are being released on the Solana platform
    – The sales volume of Solana-based NFTs climbed by over 30% in the past 24 hours
    – The NFT market capitalization has registered a minor rally due to the recent surge in the values of several cryptocurrency assets
    – The success of the NFT marketplace Tensor and the performance of the MadLads NFT collection
    – The floor price of the leading NFT project, Bored Ape Yacht Club (BAYC), rose to 13 ETH (valued at $49,000) in the past 24 hours

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