NFTs
Solana Outperforms Bitcoin and Ethereum in NFTs, But Should SOL Prices Worry You?
- Solana’s NFT sales and transaction volume fell last month.
- SOL price action remained bearish and indicators suggested a further price decline.
Solana [SOL] witnessed a year-long summer in its NFT ecosystem as blockchain outperformed its competitors. However, Solana’s NFT metrics began to decline last month. Meanwhile, the token’s price action has also turned bearish.
Solana’s NFT ecosystem is shining
SolanaFloor, a popular X handle that posts blockchain-related updates, posted a tweet highlighting SOL’s commendable performance.
According to the tweet, SOL outperformed all other networks including Bitcoin [BTC], Ethereum [ETH]It is Polygon [MATIC]in annual user adoption of the NFT blockchain.
While the number of SOL users has grown by 33% in the last 365 days, MATIC, BTC, and ETH users have grown by 29%, 10%, and 21%, respectively.
AMBCrypto’s view on DappRadar data revealed that sharky.fi’s MadLads, Frogana, and Sharx were the top NFT collections on Solana, which may have contributed to the aforementioned achievement.
Despite promising 365-day growth, things started to change in the last month. AMBCrypto’s look at Cryptoslam data highlighted that SOL’s NFT sales volume fell by more than 36% last month, as did the total number of buyers and sellers.
Total NFT transactions also fell by 11%. Santiment’s data also matched this, as SOL’s NFT transaction count dropped sharply last month.
Source: Santíment
Solana investors need to worry
Although Solana’s NFT metrics have fallen, the token’s price action has also turned bearish. According to CoinMarketCapSOL fell more than 25% last month.
In fact, in the last 24 hours alone, the value of the token has fallen by 7%. At the time of writing, SOL is trading at $145.55 with a market capitalization of over $65 billion, making it the fifth largest cryptocurrency.
The drop in price also affected the token’s social metrics. SOL’s social volume has declined over the past month, reflecting a decrease in its popularity in the crypto space.
Furthermore, Solana’s weighted sentiment also remained in the negative zone for most of the days. This clearly suggested that the bearish sentiment surrounding the token was dominant in the market.
Source: Santíment
AMBCrypto then analyzed the token’s daily chart to find out whether this downward price trend would continue for longer. We found that both SOL’s Relative Strength Index (RSI) and Money Flow Index (MFI) began to decline and fell further below their respective neutral marks.
To read Solana [SOL] Price prediction 2024-25
Furthermore, the token’s price also did not surpass the 20-day simple moving average (SMA) as suggested by the Bollinger Bands.
All these technical indicators suggested that investors could witness a further drop in the price of SOL in the coming days or weeks.
Source: TradingView