Will NFT Help Solana (SOL) Boost Performance To $140?

At the time of writing, SOL is trading at $86.54, down almost 1% in the last 24 hours and more than 5% in 7 days.

Although the crypto market and top 20 coins are constantly switching between red and green and confusing investors, it’s time to slow down and take a closer look at Solana.

NFT Market on Solana

With a market cap of approximately $1 billion, Solana’s NFT market is gaining global attention. In the OurNetwork newsletter Craig Burel notice:

“The number of NFTs launched on Solana has skyrocketed, with a total of over 8 million NFTs minted using Metaplex. Since September, the number of wallets with more than one NFT has increased significantly and recently surpassed the 500,000 mark.”

How do these numbers compare to the established OpenSea giants? As of February 2022, data from Dune Analytics shows 2,033,077 NFTs were sold on OpenSea (Ethereum), while 1,764,674 NFTs were sold on OpenSea (Polygon). However, the NFT Magic Eden marketplace, powered on Solana, already has more transactions than OpenSea.

Transaction numbers from Magic Eden and OpenSea | Source: OurNetwork newsletter

What Do On-Chain Indicators Say?

The NFT sector may be doing well, but with the war between Russia and Ukraine now making headlines, investor sentiment has changed as well. According to data from Santiment, year-to-date weighted sentiment is broadly negative. However, after a brief spike above zero, the metric has fallen below -1 (-1.202 to be exact) since the start of the war.

Weighted Psychology (Pink) | Source: San base

In the meantime, a review of development activity can provide further insight into the health of the Solana network. Although activity peaked in late December, it has almost halved since then. This may be due to the ongoing war. Reduced development activity is generally not a positive sign of network growth.

Development Activities | Source: San base

In terms of reception, the OurNetwork newsletter notes that the number of daily active subscribers has increased by approximately 300% since September 2021. However, the collapse of the Solana network is a cause for concern.

“Subscribers peaked at 299,000 at the end of January, but declined slightly to 232,000 following the network’s recent drop in performance.”

Application level time

It is interesting that adoption of the Solana network is generally on the up. With this in mind, the OurNetwork newsletter also points to the importance of two Solana wallets, Solflare and Phantom, which have launched their own iOS apps.

While not strictly crypto-based updates, it shows how off-chain accessibility can also help boost the network’s popularity.

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