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Solana Becomes Second Largest NFT Ecosystem, Will SOL Prices React?  

2 mins
Updated by Kyle Baird
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In Brief

  • Solana has processed $50 million in NFT sales in 30 days.
  • On-chain activity and DeFi TVL has slumped.
  • SOL prices are flat on the day with the coin dipping below $12.
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Nonfungible token (NFT) activity on the Solana network has remained positive despite the recent FTX imbroglio.

According to analysis by institutional research firm Delphi Digital, Solana has become the number two ecosystem for NFTs.

The 30-day sales volume metric has topped $50 million, according to Cryptoslam data. Other NFT networks such as ImmutableX, Cardano, Polygon, Flow, and BNB Chain are way behind. As of Dec. 8, Solana NFTs had $60 million in 30-day sales volume, which is more than 4x the next ecosystem, ImmutableX.

However, Ethereum still leads the NFT market by a huge margin. 30-day NFT sales volume on Ethereum was around $400 million, according to the data.

Furthermore, NFT sales have been crushed this year amid a broader crypto asset market slump.

Solana Into 2023

Solana aficionados have been touting a great year for the ecosystem, but the reality may be quite different.

Compressed NFT minting could be a big deal for web3 game studios. This means they can mint thousands of in-game NFTs for very little on the Solana network.

Furthermore, a number of game titles are set to be released on Solana next year. The launch of the Saga Solana-based phone will also be a pivotal moment for the ecosystem, said Solana Ventures investor Justin Barlow.

However, DeFi on the network has taken a massive hit in 2023. The total value locked on Solana has collapsed by 96% since the beginning of this year. TVL is a paltry $248 million at the moment, according to DeFiLlama.

Furthermore, on-chain activity, in general, has collapsed, as reported by BeInCrypto. Transactions, active addresses, and wallets have all decreased significantly over the past few months.

This has all been reflected in the depressed SOL prices.

SOL Price Outlook

Solana’s SOL coin has traded flat over the past 24 hours and was changing hands for just below $12 at the time of press.

SOL has been in a solid downtrend for several weeks and has lost 14.5% over the past seven days. Furthermore, the coin is currently down 95.4% from its lofty peak price of $260 in November 2021.

The memes were already cropping up on crypto Twitter.

The other asset associated with FTX, FTT, has pumped today on the news of Sam Bankman-Fried’s bail. FTT shot up around 30% a few hours ago but has retreated to around $0.959 at the time of writing.

Nevertheless, the exchange token was declared a security by the U.S. SEC and is down 98.9% from its all-time high.  

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...
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