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Analyzing Solana’s performance in the NFT space- Should you be bullish

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In a recent Messari report, it was revealed that NFT sales denominated in SOL increased by 19.3% and reached an all-time high in Q1 2023.
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Analyzing Solana’s performance in the NFT space- should you be bullish
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  • Solana NFT sales volume increased by more than 100% in the last seven days.
  • SOL’s stochastic indicator was oversold; the rest of the technical indicators were also bearish. 

Solana [SOL] recently received another boost that can propel growth for the network’s NFT ecosystem. Floor, a cross-chain NFT application, announced that it will be launching on Solana. As per the official announcement, the launch will take place on 8 May 2023.

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

Solana NFTs to dominate?

With the new integration, Floor users will soon be able to add their Solana wallets to see their favorite collections. Floor also revealed that more than 2,500 users have already joined the waiting list for the launch. 

This good news came days after the launch of the Mad Lads NFT collection on Solana. The newly launched NFT collection outperformed several others, including  Bored Ape Yacht Club [BAYC], in terms of sales.

However, CRYPTOSLAM’s data revealed that, at the time of writing, Mad Lads’ 24-hour sales declined by over 25%. 

A closer look at SOL’s NFT ecosystem

In a recent Messari report, it was revealed that NFT sales denominated in SOL increased by 19.3% and reached an all-time high in Q1 2023.

The ecosystem’s growth continued in the next quarter, as was evident from quite a few datasets.

For instance, Solana NFT sales volume increased by more than 100% in the last seven days. Growth was also noted in the count of buyers and sellers. 

Source: CRYPTOSLAM

Not only this, but Santiment’s chart showed that Solana’s total NFT trade count increased over the last seven days. The same trend remained true for the total NFT trade volume in USD. Mad Lads’ launch played a major role in the increase of the aforementioned metrics.

Source: Santiment

While NFTs flourished, SOL suffered

On the other hand, SOL was yet another victim of the ongoing bearish market trend as its price fell sharply. As per CoinMarketCap, SOL’s price went down by more than 16% in the last seven days.

At the time of writing, it was trading at $20.89 with a market capitalization of over $8.2 billion. The price plummet caused the negative sentiments around SOL to shoot up in recent days. 

Source: Santiment

Is a trend reversal possible?

The last week was tough for SOL investors. As per CryptoQuant’s data, SOL’s stochastic was in an oversold position, at press time. This can result in an increase in selling pressure and it can eventually give way to a trend reversal.

Source: TradingView

How much are 1,10,100 SOLs worth today?    

Lastly, a look at SOL’s daily chart suggested the departure of demand from the market. SOL’s Chaikin Money Flow (CMF) and Money Flow Index (MFI) both went sideways, which indicated that SOL’s price might not show any massive movements in the near term.

The MACD’s data indicated that the bears were still controlling the market, hence decreasing the chances of a northbound price movement. 

 

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Dipayan is a full-time journalist at AMBCrypto. He has 2 years of experience in the content creation industry. A graduate in journalism, Dipayan has a keen interest in keeping himself updated with the latest developments in the crypto-space. He is a singer and a guitarist who also enjoys going on long bike rides.
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