Even With SOL’s 20% Fall, The Solana NFT Shines

Even With SOL’s 20% Fall, The Solana NFT Shines

The SOL price has given up some of its recent gains; however, data reveals there are compelling reasons for investors to stay positive. The price of Solana (SOL) hit $143.50 on April 2, following an amazing 82 percent gain in only 20 days. This favorable performance can be linked to recent nonfungible token (NFT) market-related news and a marketwide rally. Still, investors may be baffled by the current 22.7 percent loss.

On March 18, Coinbase Wallet enabled support for SOL and other Solana-based blockchain assets, which sparked a rise. Coinbase also stated that it intends to “further integrate” with Solana by linking the Coinbase Wallet to the network’s decentralized applications (DApps) and network-based tokens (NFTs). Investors were also anticipating OpenSea’s integration of the Solana network. As a result, Solana will join Ethereum, Polygon, and Klaytn as payment alternatives in OpenSea’s “rankings” page’s “all chains” category. Solana’s strategy of focusing on NFT marketplaces appears to have paid off, as the layer-1 blockchain network climbed to third place in total NFT sales on April 6. Furthermore, according to the most recent 30-day collected statistics, Solana has amassed $216 million in NFT revenues.

Deposits in Solana’s DApps are decreasing

After the network’s total value locked (TVL) fell below 50 million SOL in late March, Solana’s principal decentralized application (DApp) statistic began to show signs of fragility. The graphs illustrate how Solana’s DApp deposits dropped by 30% in just three weeks, reaching their lowest level since September 20, 2021. In comparison, Terra’s TVL has climbed by 34% year to date, while Fantom network deposits have increased by 30%.

On the plus side, Neon announced the alpha release of the first Solana Ethereum Virtual Machine (EVM) cross-compatibility and scalability solution on April 5. Solana revealed on April 7 that over 1.6 million network addresses now have an NFT. Amid the crowd, a DeFi application stood out.

Analyze DApp use metrics to see if the TVL decline is a cause for worry. The number of Solana network addresses engaging with decentralized apps climbed by 11% on average on April 8. With 153,290 users, Orca, a user-friendly decentralized exchange (DEX), was the clear winner.