Solana: It’s time for SOL bears to show their “magic” as NFTs lose their spark

by James · October 31, 2022

Magical Edenone of the largest NFT marketplaces for Solana, saw a decline in transaction volume over the past month. This development could be a barrier to the growth of Solana on the NFT market.

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Here is AMBCryptos Price prediction for Solana [SOL] for 2022-2023

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Trouble in the Garden of Magic Eden

According to data provided by DappRadar, the volume and unique active users on Magic Eden have decreased over the past month. Furthermore, the transaction volume on Magic Eden also fell massively after 20 October.

The number of unique active wallets with Magic Eden also witnessed a decline. At press time, the number of unique active wallets on Magic Eden was 30,000.

Source: DappRadar

Another critical factor observed was the decline in daily purchases on the Magic Eden platform. According to data from Dune the number of daily purchases on the Magic Eden platform decreased significantly. The number went from 100,000 to 34,000 at press time.

Source: Dune Analytics

Blue chip blues

The slowdown in activity on the Magic Eden platform may have also affected the top Solana NFTs. The Solana The blue chip index consists of a carefully selected basket of blue chip collections based on several weighted criteria. These include volume, social trends, age and other statistics.

As can be seen in the image below, the price of that index had decreased in the last 30 days. This was an indication of a poor NFT market for Solana. Furthermore, Solana merchants on the network have also decreased from 6,000 to 2,000 in the last 30 days according to data provided by solana floor.

Source: solanafloor

Despite the negative conditions surrounding Solana’s NFT market, the blockchain still managed to retain its dominance in terms of NFT volume. Solana was ranked #2 just behind Ethereum in this regard.

Thus, it remains to be seen whether the aforementioned factors can indicate a negative trend for Solana NFTs or these events were just a small bump in the road.

At the time of writing, $SOL traded at $32.99 and had risen by 0.18% in the last 24 hours according to CoinMarketCap. Volume fell by 3.84% in the same time period. The market also witnessed growth, and at press time Solana had conquered 1.1% of the total crypto market.