- Solana’s daily activity started to decline as the ecosystem got impacted.
- Solana has begun to lose its footing in sectors such as NFT and the DeFi market.
Solana [SOL] has attracted a large number of users in the past to its network due to its cheap transaction fees and thriving ecosystem. However, over the last few months, the tides have been changing as Solana’s network activity has started to fall sharply.
Read Solana’s [SOL] Price Prediction 2023-24
Network activity falters
The fall in network activity was indicated by the token terminal’s data which revealed that the daily active users on the Solana network fell by 11.7% in the last three months.
The decline in activity also impacted the revenue generated by Solana, which ended up decreasing during the same period.
Source: token terminal
One reason for the decline in activity could be the decreasing interest in Solana’s NFT ecosystem.
According to filpsidecrypto’s data, the volume of Solana NFTs declined by 37% in the last 24 hours. The number of trades occurring on the network also fell during this period.
The significant decrease in attention may be due to the fact that prominent Solana NFT collections, y00ts and DeGods, are expected to bridge to other protocols by the end of this month.
But the falling interest wasn’t just reserved for the NFT space as Solana’s DeFi sector was also impacted. According to Dune Analytics’ data, the daily active users on DEXs of the Solana network started to fall, at press time. Due to this, the TVL of Solana decreased over the last few days according to DeFiLLama.
Realistic or not, here’s SOL market cap in BTC’s terms
Source: Dune Analytics
The decline in activity might also be due to the performance of dApps on the Solana network. According to Dapp Radar’s data, major dApps on the network such as Saber and Radium witnessed a fall.
The waning attention towards the ecosystem was mirrored by a decrease in investors’ interest. As per Santiment’s data, the price and trading volume of SOL substantially dropped in recent days.
Nonetheless, a surge in development activity was detected, suggesting that the network might receive future updates soon, which could lure more users toward the platform and the cryptocurrency itself.
Source: Santiment
