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Will Solana miss out on the current bullish market? The answer is…

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  • While Solana saw growth on multiple fronts, TVL declined
  • On-chain metrics showcased a pessimistic outlook, with some traders turning bearish

Multiple dApps and DEXs on the Solana network have seen an uptick in activity over the last few days. However, this spike in activity on Solana may not be enough for the chain to take part in this bull run.


Is your portfolio green? Check out the Solana Profit Calculator


The DEX in question would be Drift Protocol, with the same recording an ATH recently in terms of daily active users.

 

Another dApp – Light Protocol –  witnessed an improvement in terms of activity on the Solana network.  The protocol verifies ZK SNARKs on the network. At press time, the protocol had managed to complete over 2 million transactions.

Despite the success of Solana’s protocols, however, the overall TVL of the network declined. It fell from $281 million to $243.06 million over the past few weeks alone.

Source: Defi Llama

The decline in Solana’s TVL was accompanied by a decline in interest for its NFTs. According to data from SolanaFloor, for instance, the protocol’s blue-chip NFTs struggled to grow over the last month. This contributed to a hike in the overall volume of NFTs sold on the protocol from $119,662 to $49,385.

Source: Solanafloor

Some more problems on the horizon?

The decline in NFT interest would be due to increasing negative sentiment that has been growing around Solana. With multiple downtimes and failures, many in the crypto-community have turned skeptical about the future of the Solana network.

In fact, SOL has also suffered during this time period. According to Santiment’s data, the trading volume for SOL fell from 3.41 billion to 1.36 billion. The price volatility, however, continued to hike. Higher volatility would make many risk-averse traders shy away from buying SOL.


Realistic or not, here’s SOL market cap in BTC’s term


However, development activity on the Solana network surged over the last few weeks. This spike in development activity suggested that the frequency with which developers on the Solana network have been contributing to its GitHub is high.

This could imply that new updates and upgrades may be on their way for Solana in the future.

Source: Santiment

However, the promise of new upgrades hasn’t been enough for traders to become optimistic about the future of Solana.

In fact, according to Coinglass’ data, 52.08% of all trades against Solana have been short positions.

Source: coinglass

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Himalay is a full-time journalist at AMBCrypto. A Computer Science graduate, Himalay writes about crypto with a special focus on the latest coin-based updates. He is a fan of gonzo journalism, transgressive fiction, heavy metal, and Manchester United.
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