Can Solana’s new community-centric NFT marketplace revitalize SOL

by James · October 27, 2022

Solana blockchain network has seen significant efforts towards NFT support in the past. In the early days, Solana looked to market itself as a cheaper alternative to the NFT market compared to Ethereum.

While these efforts have contributed to network usage, Solana is still not the NFT powerhouse the world expected.

Here is AMBCrypto’s price estimate for Solana (SOL)

But is there still a chance to realize these expectations? Well, Solana has added a new NFT platform called Night Market to Arsenal.

The new NFT market aims to rejuvenate the demand for Solana NFTs. What is unique about this new NFT market is that it has a community-centric approach. This means that incentives and rewards can be built around developers and users to encourage more use.

Welcome to the night market – the new home of Solana’s creators, collectors and designers.

👇🧵 Here’s what we’re all about. All interactions will be considered. pic.twitter.com/f5dgTWLBOQ

— Night Market by Motley Labs (🌚, 💫) (@nightmarketio) 25 October 2022

Implementing the right strategy for NFTs can be the difference between low or high organic traffic from the NFT market. However, there are many other variables involved.

That said, the night market is a fresh addition to Solana, so it’s not yet put to the test. Nevertheless, this addition could strengthen Solana utility and potentially increase the organic demand for Solana NFTs and the SOL cryptocurrency.

Demand for Solana NFTs has significantly reduced over the past six months. This may have something to do with the bear market and the shift away from risk-on asset classes.

Source: Sentiment

Solana’s low NFT activity in 2022 has not surprisingly been linked to the bearish market conditions. Its total NFT count shows this.

For example, the Solana NFT count recorded its largest 6-month peak in the second half of June. This is around the same time that the market started to recover from the bottom in mid-June.

Source: Sentiment

There is a good chance that we could see another increase in NFT volumes if the market embarks on another strong bull run. Solana is already in a better position to deliver according to the needs of the NFT market thanks to the Night Market.

Is the next bullish wave already underway?

October’s bearish market conditions resulted in a retest of SOL’s lower 2022 series. It nearly tested June lows after falling as low as $26.84 last week. The press time price of $31.25 meant it was already up more than 15% from last week’s low.

Source: TradingView

The bullish run seen in the last two days has restored expectations of another big bullish relief. Unfortunately, it is still too early to tell if this is the start of the next bullish rally. The upside also faces resistance after interacting with the 50-day moving average.

Solana’s real volume had already started to cool down after a big spike.