Solana NFT Marketplace Loses Momentum as User Activity Wanes
Amidst the constant inclusion of newcomers to the blossoming Non-Fungible Token (NFT) marketplace, veteran experts are feeling distressed about the future of Solana’s ecosystem. Dune Analytics data suggests that since February 2021, usage of Solana’s platform has experienced a steady decline which further increased the tension between the experts and firms.
In spite of this seemingly negative trend, NonFungible.com estimates that 2020 saw the NFT market skyrocket to more than $250 million. Even more impressive, Q1 2021 brought the overall market size up to over $2 billion – a sizable surge and a clear indicator of the burgeoning industry’s strength.
Though it remains to be seen how these changes will ultimately affect Solana’s network specifically, one thing is certain: the NFT world has come into its own, with no signs of slowing down any time soon.
Other impacts linked to the declining usage
Despite having an illustrious history of facilitating NFT trades, Solana has seen a noteworthy decrease in both its overall trade count and volume over the past month. According to a recent study, this dip also correlates with a similar decline in the platform’s daily active users – highlighting just how pertinent user engagement is for any blockchain network’s success.
The recent study further heightened the tension of Solana as the leading cryptocurrency on the market has been struggling to breach key resistance levels over the past few days.
With prices fluttering around $23.65 and selling pressure increasing, many experts have opined that unless it can break above the $23.20 and $24.75 resistances in quick succession, its market capitalization of $9 billion could be at risk of diminishing.If this doesn’t happen soon, selling pressure may worsen and cause further drops in the asset’s value.