Solana: Is is time for SOL bears to show their ‘Magic’ amid NFTs losing their spark

Magic Eden, one of the largest NFT marketplaces for Solana, witnessed a decline in terms of transaction volume over the past month. This development could be a barrier to the growth of Solana in the NFT marketplace.

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Here’s AMBCrypto’s 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 declined over the past month. Furthermore, the transaction volume on Magic Eden also declined massively after 20 October.

The number of unique active wallets using Magic Eden witnessed a downfall as well. At press time, the number of unique active wallets on Magic Eden stood at 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 decline in activity on the Magic Eden platform could also have made an impact on the top performing Solana NFTs. The Solana blue chip index consists of a carefully selected basket of blue chip collections based on multiple weighted criteria. These include volume, social trends, age, and other statistics.

As can be seen from the image below, in the past 30 days, the price of that index had been depreciating. This was indicative of a poorly performing NFT market for Solana. Furthermore, Solana traders on the network also decreased from 6,000 to 2,000 in a span of the last 30 days according to data provided by solanafloor.

Source: solanafloor

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

Thus, it remains to be seen whether the aforementioned factors could hint at a negative trend for Solana NFTs or these events were just a minor bump in the road.

At the time of writing, $SOL was trading at $32.99 and had appreciated by 0.18% in the last 24 hours according to CoinMarketCap. Its volume declined by 3.84% in the same period of time. Its market also witnessed growth and at press time, Solana had captured 1.1% of the total crypto market.