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Solana traders hoping for a bull run should read to know what to expect



Solana loses its position to UNI, but on this front, it registered growth 
Source: StockAI

  • Uniswap overtakes Solana to become the 16th largest crypto based on market cap
  • Despite several projects leaving Solana, its NFT space witnessed growth

Solana [SOL] continued its downtrend as it lost its position as the 16th largest cryptocurrency in terms of market capitalization to Uniswap [UNI]. SOL registered a decline of more than 17% in the last week.

As per to CoinMarketCap, SOL’s price went down by 10% in just the last 24 hours. Furthermore, at the time of writing, it was valued at $9.99 with a market capitalization of more than $3.6 billion.

Are your SOL holdings flashing green? Check the Profit Calculator

Do we see a road to recovery?

SOL’s on-chain metrics didn’t look optimistic, as most of them suggested a further decline in price over the days to follow. For instance, SOL’s development activity witnessed a sharp decline. This was a red flag because it represented less effort from developers to improve the blockchain.

Negative sentiments around Solana also registered an uptick, which can be attributed to its recent price action. Another piece of bad news was that SOL’s price decline was accompanied by a massive surge in its volume. This further legitimized the downtrend.

However, SOL’s Binance funding rate remained relatively high, reflecting its popularity and demand in the derivatives market. Another positive signal was revealed by CryptoQuant’s data, as SOL’s Relative Strength Index (RSI) went into an oversold position, suggesting a possible price hike.

Source: Santiment

Read Solana’s [SOL] Price Prediction 2023-24

A sneak peek into the NFT space

Solana’s NFT space faced a few blows as a few of the popular projects announced that they were parting ways with SOL and migrating to other blockchains.

For instance, y00t revealed that it will bridge to Polygon in the first quarter of 2023. Apart from y00t, DeGods also chose to take the same path and announced its plans to migrate to Ethereum and Polygon.

While these projects were leaving Solana, Claynosaurz, stated that it would remain committed to Solana. The NFT collection also stated plans to “redefine what quality means alongside other amazing builders who chose Solana”.

Surprisingly, Santiment’s chart revealed that Solana’s NFT ecosystem actually did witness growth over the last week. SOL’s total NFT trade count and NFT trade volume in USD both registered spikes last week, reflecting growth.

Furthermore, as per data from Dune Analytics Solana could be seen in a positive light over the next few days. This was because Dune Analytics pointed out that the number of active wallets was pretty consistent. This showed the popularity of Solana’s NFT space. 

Source: Santiment

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Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot's writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S - There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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