Solana NFTs beat Ethereum and Polygon: What’s going on?

• Solana outperformed Polygon and Ethereum in terms of NFT transactions.
• TVL declined as sentiment around the token fell.

Solana [SOL] is experiencing its most impressive performance since the start of this year, fueled by a surge in popularity.

NFT volumes on the rise

Solana’s dominated in the NFT landscape, with over 1.2 million transactions recorded within the past seven days, surpassing Ethereum [ETH] and Polygon [MATIC] in transaction volume.

This significant achievement showcased that Solana’s growing popularity wasn’t only caused by meme coins on the network, and that NFTs had a great role to play as well.

Source: X

Solana’s performance not only solidifies its position as a formidable competitor but also reinforces investor confidence in its long-term potential.

If it continues to outcompete giants such as Ethereum, it could soon start seeing a surge in market cap and may be able to flip the likes of the Binance [BNB] network in the future.

Looking at the network

Coming to the overall state of the Solana network, it was seen that Solana’s revenue had surged by 33.33% in the last month.

However, there was a slight decline in active users on the network, signaling potential challenges in user retention for the Solana network.

In tandem with broader market trends, decentralized exchange (DEX) volumes and total value locked (TVL) on Solana have experienced a slight decline.

This temporary setback may be attributed to the memecoin frenzy on Solana slowly dying down.

Source: Artemis

A closer look at Solana’s GitHub repository revealed a 35% decrease in code commits, indicating a potential slowdown in development activity.

Furthermore, the overall number of core developers on the network has also seen a decline, raising questions about the platform’s ability to sustain its momentum in the long run.

Source: Token Terminal

Sentiment declined

Despite its impressive performance, Solana’s price experienced a significant decline of 13.61% over the past month.

But SOL remained resilient, trading at $153.27 at the time of writing, with a 2.12% increase in trading volume observed in the last 24 hours.

Read Solana’s [SOL] Price Prediction 2024-25

Social Volume surrounding Solana saw a decrease, conversely, accompanied by a decline in Weighted Sentiment.

This shift in sentiment may reflect changing perceptions among investors and could harm SOL’s ability to reach new highs in the future.

Source: Santiment