Solana NFTs: Traders surge 111%, but sales are down – Why?

• The number of NFT traders on Solana recently rallied to a multi-month high.
• The steady decline in SOL’s price has led to a fall in NFT sales volume.

The daily count of non-fungible token [NFT] traders on Solana [SOL] climbed to a multi-month high on the 8th of May, data from CryptoSlam showed.

According to the NFT data tracker, 123,426 traders executed the sale of at least one Solana-based NFT on that day. This marked a 111% rally from the 58,405 NFT traders on the network recorded the previous day.

Source: CryptoSlam

However, despite the surge in NFT traders count, NFT sales volume on Solana cratered by 16% on the 8th of May. That day, the USD value of all Solana-based NFTs sold was $3.01 million.

On the 7th of May, it was above $3.5 million.

This decline in sales volume is due to the steady decline in SOL’s value in the past few days. According to CoinMarketCap’s data, the coin’s value fell by 7% between the 7th and the 8th of May.

At press time, SOL traded at $143.04. 

While a decline in SOL’s price can make minting and buying NFTs on Solana more affordable, it might not translate to the same total spending as before.

Also, with SOL’s low price action, investors who bought SOL-based NFTs for potential appreciation in SOL’s value might become hesitant to sell.

This could lead to fewer high-value NFT purchases, impacting the overall sales volume.

State of the NFT market

An assessment of the performance of the general NFT ecosystem revealed a decline in the past 30 days, mirroring the downtrend in the general cryptocurrency market. 

According to CoinGecko’s data, global cryptocurrency market capitalization has plunged by 15% in the last month. At press time, this was $2.4 trillion.

According to NFTGo’s data, NFT sales volume during that period totaled $488 million and declined by 29%.

Due to the decline in trading activity, NFT market capitalization plummeted. At $17.28 billion at press time, this dropped by 15 % in the past 30 days. 

Source: NFTGo

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

During that period, the NFT trader count fell by 9.5%.

Per NFTGo’s data, the total number of unique addresses that bought or sold at least one NFT from any of the NFT collections tracked over the last month was 107,000.