As SOL drops 5% in 24 hours, can Solana NFTs save the day?

• Solana’s NFT trade count and trade volume in USD spiked. 
• SOL was down by over 6%, and indicators looked bearish.

Solana’s [SOL] NFT ecosystem flourished over the last seven days as several key metrics surged. This happened at a time when its native token lost over 5% of its value in 24 hours.

However, will the blockchain’s achievements in the NFT ecosystem have any indirect positive impact on SOL’s price?

Solana NFTs boom!

AMBCrypto’s look at CryptoSlam’s data revealed that Solana’s NFT ecosystem witnessed growth on multiple fronts over the last week. For instance, its NFT sales volume spiked by more than 40%.

A similar increasing trend was also noted in terms of the number of sellers and buyers, as they grew by over 71% and 62%, respectively.

Source: CRYPTOSLAM

Other datasets also painted a similar picture of growth. AMBCrypto’s analysis of Santiment’s data pointed out that Solana’s total NFT trade counts increased last week.

SOL’s NFT trade volume in USD also spiked substantially, reflecting more activity. 

Source: Santiment

Dune’s data revealed that Solana’s NFT marketplace volume also gained upward momentum over the last few days, as did its platform fees.

Source: Dune

To check which NFT collections performed the best on Solana, AMBCrypto took a look at DappRadar’s data.

We found that CryptoUndeads, STEPN, and Open Solmap were the top three NFT collections on the blockchain in the past seven days.

Aside from these, Frogana and Mad Lads also made it to the top five on the same list.

Another piece of optimistic news was recently revealed for SOL’s NFT ecosystem. Nearly 16,000 Solana Saga mobiles have been activated to date.

Since mobile plays a major role in promoting SOL NFTs, this development might have a positive effect on the ecosystem soon.

almost 16000 @solanamobile Sagas have been activated 🗣️📱 pic.twitter.com/8igL0XQjdD

— ashen | 959.sol (@notashenone) January 21, 2024

Solana is in a dire state

While the blockchain’s NFT ecosystem boomed last week, the same was not true for SOL, as its value dropped. According to CoinMarketCap, SOL was down by more than 6% in the last seven days.

In the last 24 hours alone, the token’s price plummeted by over 4%. At the time of writing, SOL was trading at $88.71 with a market capitalization of over $38 billion, making it the fifth-largest crypto.

AMBCrypto then checked SOL’s daily chart to understand whether it could make a recovery in the days to come. Its MACD displayed a clear bearish upper-hand in the market.

Solana’s Relative Strength Index (RSI) also started to go down and was headed further below the neutral mark at press time. This indicated that the possibility of a further downtrend was high.

Source: TradingView

Is your portfolio green? Check out the SOL Profit Calculator

Apart from the market indicators, investors’ sentiment around SOL also remained bearish. This was evident from the drop in its Weighted Sentiment over the last week.

The price downtrend also took a toll on SOL’s popularity, as its Social Volume dropped. Therefore, the possibility of SOL recovering in the coming days looks slim.

Source: Santiment