Solana traders hoping for a bull run should read to know what to expect
- 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.
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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.
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”.
We chose $SOL because of you. That hasn’t changed, and neither has our goal. We’re going to redefine what quality means alongside other amazing builders who chose solana. In due time, they will come and we’ll be ready. When the going gets tough, the tough get going ? pic.twitter.com/K6ncALsojV
— Claynosaurz (@Claynosaurz) December 27, 2022
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.