NFTs
Solana NFTs: Traders Rise 111%, But Sales Drop – Why?
- The number of NFT traders on Solana recently reached a multi-month high.
- The steady decline in SOL price has led to a drop in NFT sales volume.
The daily count of non-fungible token [NFT] traders in Solana [SOL] rose to a multi-month high on May 8, data from CryptoSlam showed.
According to the NFT data tracker, 123,426 traders executed the sale of at least one Solana-based NFT that day. This marked a 111% recovery from the 58,405 NFT traders on the network registered the previous day.
Source: CryptoSlam
However, despite the increase in NFT trader count, NFT sales volume on Solana fell by 16% on May 8. On that day, the dollar value of all Solana-based NFTs sold was $3.01 million.
On May 7, it was over $3.5 million.
This drop in sales volume is due to the constant drop in the value of SOL in recent days. According to CoinMarketCap data, the value of the currency fell 7% between May 7th and 8th.
At press time, SOL was trading at US$143.04.
While a decline in the price of SOL could make minting and purchasing NFTs on Solana more affordable, this may not translate into the same total spend as before.
Additionally, with SOL’s low price action, investors who purchased SOL-based NFTs for potential appreciation in SOL’s value may be hesitant to sell.
This could lead to fewer high-value NFT purchases, impacting overall sales volume.
State of the NFT Market
An assessment of the performance of the overall NFT ecosystem revealed a decline over the past 30 days, reflecting the bearish trend in the overall cryptocurrency market.
According to CoinGecko’s data, the global cryptocurrency market capitalization has fallen by 15% in the last month. At press time, that was $2.4 trillion.
According to NFTGo’s data, NFT sales volume during this period totaled $488 million and decreased by 29%.
Due to the decline in trading activity, NFT market capitalization has plummeted. With US$17.28 billion to date, this value has fallen 15% in the last 30 days.
Source: NFTGo
To read Solana [SOL] Price prediction 2024-25
During this period, the number of NFT traders fell by 9.5%.
According to NFTGo data, the total number of unique addresses that bought or sold at least one NFT from any of the NFT collections tracked over the last month was 107,000.