Solana NFT volumes rise: Impact on SOL's market performance

Solana NFT volumes surged, surpassing Bitcoin and Ethereum.
DEX volumes on the network continued to fall.

The Solana [SOL] ecosystem has been one of the most successful ecosystems in the crypto space over the past few months. One of the reasons for the same would be the high volume for Solana NFTs.

Solana NFTs on the rise

According to recent data, Solana outperformed both Bitcoin [BTC] and Ethereum[ETH] in terms of unique NFTs traded over the last month.

Source: X

However, the NFT volume wasn’t being driven by blue chip collections on the Solana network.

Popular projects such as Mad Lads, Solana Monkey Business and Clayosaurrz all witnessed a decline in the floor price over the last week.

This indicated that the NFT volume was driven by new NFTs that were being created on the Solana network that haven’t gained too much popularity.

Source: Solana Floor

An interest and less popular NFTs indicate a healthy and thriving ecosystem.

However, Solana’s performance in other areas, such as the DeFi sector, is also important in determining how the protocol and its ecosystem do in the long run.

In terms of DEX (Decentralized Exchange) volumes, the protocol had witnessed a massive decline in activity, going from $4 billion in volume to $1 billion.

Despite the falling DEX volumes, the TVL (Total Value Locked) on the Solana network remained largely the same.

Source: Artemis

How is the SOL price doing?

At press time, SOL was trading at $144.93. Despite the popularity of Solana’s NFTs and the overall health of the ecosystem, the price of SOL continued to fall.

Since the 1st of April, SOL’s price declined by 26.59%. However, after reaching below the $161.28 level, the price of SOL started to consolidate.

The $161.28 level has been tested twice in the last few weeks and with the help of further bullish momentum, the price of SOL could again re-attain previously obtained levels.

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

In the last few days, the CMF (Chaikin Money Flow) for SOL had surged in the last few days indicating that the money flowing into SOL had surged which could cause a surge in buying pressure in the future.

However, the RSI (Relative Strength Index) for SOL plummeted in the last few days, indicating that the bullish momentum had waned for SOL.