Solana’s NFT space can recover soon, but SOL’s troubles are far from over
- Compressed NFTs will be launching on Solana soon, tweeted Solflare Wallet.
- A few metrics related to NFTs looked promising, but SOL has quite a few roadblocks ahead.
Solana’s [SOL] current state in the NFT market was not the best, with major collections like y00ts migrating to Polygon [MATIC].
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y00ts, which was the most traded Solana NFT collection during the last week, has completed over 75% of its migration to Polygon recently.
Most-Traded NFT Collectibles on Solana Last 7 Days 🔥
🥉 @oogyNFT@Claynosaurz@HGESOL@FamousFoxFed@TheBastards_xyz @WolfCapital_@THELILYNFT#TransdimensionalFox@MagicEden #Solana $SOL pic.twitter.com/GPXWyPmbpy
— Solana Daily (@solana_daily) March 29, 2023
The migration was not very pleasant news for Solana, which has already been victimized by declining NFT transaction count and volume, as suggested by Dune’s data.
Read Solana’s [SOL] Price Prediction 2023-24
A game changer for Solana NFTs?
Amidst this chaos, a major announcement was made on 31 March, which had the potential to turn the tables in Solana’s favor in the coming months. Solflare announced that compressed NFT will be launching soon on Solana, which will play a key role in the scalability of NFTs.
🔥 Compressed NFTs, HUGE value 🔥
Happy to announce that compressed NFTs are LIVE in Solflare Extension!
We can't wait to see what the next chapter of @solana NFTs will bring to all of us – and are proud that Solflare users are always staying ahead of the curve 🙌 pic.twitter.com/9yWKwk13ep
— Solflare Wallet (@solflare_wallet) March 30, 2023
Compressing NFTs will drastically reduce the cost and storage requirements to mint and store NFTs in the Solana network. Solana Labs developed compression for NFTs to serve Web2 and Web3 enterprise customers who want to activate millions or even billions of users.
These looked like signs of revival
It was interesting to see that a few of the NFT metrics looked positive for the ecosystem. For instance, Solana NFT marketplace’s volume registered an uptick over the past few days, suggesting more users on the network.
CRYPTOSLAM’s data highlighted that Solana’s NFT sales volume went up by more than 60% in the last 24 hours. Moreover, there was a similar hike in the number of buyers.
The number of more buyers was also evident from Santiment’s chart, which suggested an uptick in the ‘amount of unique addresses bought less than 1k USD of NFTs’ metric.
Realistic or not, here’s SOL market cap in BTC terms
SOL might not benefit from this
SOL’s NFT space showed signs of recovery, but the native token might not enjoy a lot of benefits. As per CoinMarketCap, SOL’s price declined by over 6% over the last week, thanks to the bearish market conditions.
At press time, SOL was trading at $20.32, with a market capitalization of more than $7.8 billion. LunarCrush’s data revealed that bullish sentiments around SOL declined heavily last week, increasing the chances of a continued downtrend.
The same possibility was further established as SOL’s AltRank increased, which was a bearish signal. Solana’s Binance funding rate also declined sharply, suggesting decreased demand in the futures market.