Solana struggles for revival post SEC lawsuit
- Solana’s ecosystem experienced a 48% decline in activity after the SEC lawsuit.
- DEX volumes and NFT interest declined, but some DEXes showed signs of recovery.
Ever since the SEC filed a lawsuit against Coinbase and Binance, the cryptocurrency market, particularly altcoins, experienced negative repercussions. With time, the impact extended beyond token prices and began affecting the surrounding ecosystems.
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Ecosystem takes a hit
Solana [SOL] suffered greatly because of SEC’s lawsuit, as indicated by Messari’s data. In terms of activity, the network experienced a massive 48% drop in the last 30 days.
Solana’s DEX volumes witnessed a significant decline as well, resulting in a material fall in the total value locked (TVL). Messari’s data revealed that Solana’s TVL to market cap ratio dropped by 20% following the news of the lawsuit.
However, there were signs of recovery for some DEXes, as activity on the networks gradually increased. Dapp Radar’s data indicated that Saber, a popular DEX on Solana, experienced a surge in transaction numbers alongside an uptick in active wallets.
On the other hand, Raydium, another DEX, did not witness notable growth in either unique active wallets or volume during the past week.
The NFT sector gets impacted
Turning to the NFT sector, Solana’s blue-chip NFTs saw a significant surge in recent weeks. However, despite the interest in these blue-chip NFTs, overall interest in the Solana NFT ecosystem declined.
Data from solanafloor indicated a considerable decline in the volume of NFTs being traded on the network in the past few days. Additionally, the floor price of these NFTs experienced a significant decline during this period.
These observations suggested that interest in Solana’s blue-chip NFTs alone may not drive long-term growth in the ecosystem.
Realistic or not, here’s SOL’s market cap in BTC’s terms
At the time of writing, SOL was trading at $16.89, according to Santiment. The price experienced a significant decline in recent weeks, accompanied by a substantial fall in SOL’s trading volume.
On the development front, it appeared that development activity had significantly declined in the past few days, indicating that new upgrades and updates on the Solana network should not be expected soon.