- Solana’s NFT market has surged, leading to an 87% increase in DApp volumes, surpassing Ethereum in growth.
- Despite these impressive stats, SOl is struggling to gain significant momentum.
Solana, one of the best-performing tokens in the recent past, has recently recorded a significant surge in activity. The booming NFT market has primarily brought about this significant surge. According to DappRadar, over the past few days, DApp volumes on Solana have skyrocketed by over 87%, of which a substantial amount can be largely attributed to the growing popularity of the Tensor NFT marketplace.
This breakthrough has positioned Solana as the top gainer among the five largest Layer 1 blockchains by DApp volumes.
According to data from DappRadar, Solana recorded an impressive $83 million in volumes within the last 24 hours. This increase in activity has put the scalable network on the frontline, outstripping its competitors, including Ethereum. Notably, Ethereum is the largest blockchain by DApp volumes. While Solana celebrates a surge in DApp volume, this high-speed blockchain has yet to surpass Ethereum, which saw a 30% decline over the same period. Yet, it still remains at the top of the table with a staggering $4.56 billion in volumes.
Solana Records a Surge in Active Users
There’s more where that came from, the rise in Solana’s DApp volumes coincides with a significant surge in the number of active users on the network. Digging deep into specifics, Solana recorded a 111% growth in unique wallets, leaving the mark at 2.49 million. Additionally, transactions on the Solana blockchain have also registered a 15% increment, surpassing 11 million.
Owing to the impressive metrics of Solana NFTs, Magic Eden and Tensor have largely played the role. Notably, intense activity on these two NFT marketplaces can be traced back to 2023. Currently, Magic Eden, the largest marketplace in Solana, has seen its volume increase by over 600%. Also, Tensor hasn’t been left behind. Launched in July 2022, the prominent marketplace has reported a 95% surge in volumes and a nearly 60% increase in users.
The two have propelled Solana to the second-largest blockchain by NFT sales, with $79 million in sales recorded in August.
It’s also worth noting that these impressive metrics come at a time when the regulatory landscape is very ferocious. Shedding light on this, recently, Open Sea received a Wells notice from the SEC threatening to sue the NFT marketplace because the regulatory agency believes NFTs on the platform are securities.
OpenSea has received a Wells notice from the SEC threatening to sue us because they believe NFTs on our platform are securities.
We're shocked the SEC would make such a sweeping move against creators and artists. But we're ready to stand up and fight.
Cryptocurrencies have long…
— Devin Finzer (dfinzer.eth) (@dfinzer) August 28, 2024
Holding the 5th Position by market cap, at the time of writing, SOL is swapping hands with $133.01, marking a 1.76% surge in the last seven days.
Solana’s Technical Analysis
Despite these killer stats, the Solana native token is struggling to gain significant momentum. The Chaikin Money Flow (CMF) indicator, which measures buying and selling pressure, currently shows a negative value, indicating weak demand. However, there is a silver lining, as the CMF has created a higher high, suggesting that buyers are gradually returning to the market. For a confirmed uptrend, the index needs to move into positive territory.
Additionally, the Moving Average Convergence Divergence (MACD) line, another key indicator, is also signaling a weak uptrend. The MACD line remains below the signal line, with red histogram bars further indicating that bears are still in control.
