Solana: Assesses the state of NFT prices and trading volume

by James · March 25, 2023

Solana has seen a decline in NFT activity since the start of the year.
SOL’s value has grown enormously in the last three months.

Despite the resurgence of interest in profile picture NFTs (PFPs) since the beginning of the year, Solana has [SOL] has witnessed a steady decline in NFT activity.

According to data from Dune Analyticsthe network has seen a steep decline in the number of monthly NFT trades completed since September 2022. With 349,937 NFT trades completed on Solana this month, it has been a 63% decrease from the 944,010 total NFT trades completed in January.

Source: Dune Analytics

As a result of a consistent drop in NFT trading numbers on Solana since the start of the year, the network has also experienced a drop in sales volume. With a sales volume of $35.35 million recorded so far this month, Solana has seen a 64% decrease from the $99.37 million recorded in total NFT sales volume in January. In the last month alone, this fell by 22%.

Source: Dune Analytics

Solana’s marketplaces are the biggest losers

Due to a decline in NFT activity at Solana, the NFT marketplaces native to the chain have experienced a sustained decline in sales volume, number of buyers and sellers, and revenue.

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Formfunction, a Solana-based NFT marketplace, recently announced its decision to cease operations after only 13 months of operation due to a decline in Solana NFT prices and trading volume.

We have some sad news to share today – Formfunction will be closing on Wednesday 29th March.

This was an extremely difficult decision; however, after much discussion and careful consideration, we have come to the conclusion that we cannot continue to operate Formfunction.

— Formfunction (@formfunction) March 15, 2023

Leading NFT marketplace Magic Eden has also seen a drop in NFT activity and a decline in market share. For example, the weekly number of NFT transactions completed on Magic Eden has fallen by 75% since the first week of the year.

Source: Dune Analytics

Likewise, the number of active traders using the marketplace has also seen a downward trend since the start of the year. According to data from Dune Analytics, this has since fallen by 31%.

Source: Dune Analytics

Realistic or not, here is SOL market value in BTC’s terms

SOL in the middle of all this

Thanks to the rally in the general cryptocurrency market since the beginning of the year, SOL’s value has risen by 105% so far this year. At press time, the altcoin was exchanging hands at $20.54 per SOL, data from CoinMarketCap revealed.

With increased coin accumulation over the past week, SOL buyers were spotted in control of the market on a daily chart at press time.

The DMI indicator (Directional Movement Index) put the strength of buyers (green) at 19.85, above that of sellers (red) at 16.69.

Similarly, SOL’s Money Flow Index (MFI) rested above the neutral 50 line at 64.57, indicating increasing buying momentum.