Solana NFT Marketplace Integration and DApp Metrics Shine Even After SOL’s 20% Drop
On April 2 after an incredible 82% rally over a 20 day period Solana (SOL) price reached $143.50. This positive performance can be attributed to recent NFT markets-related news and a marketwide bounce, but it could have confused investors because of the current 22.7% decline.
The rally started after Coinbase Wallet added support for SOL and other Solana-based blockchain tokens on March 18. The crypto exchange also outlined plans to “further integrate” with Solana by connecting the Coinbase Wallet with the decentralized applications (DApps) and nonfungible tokens (NFTs) hosted on the network.
Investors are excited with the expectation of OpenSea’s integration of the Solana network. This means Solana will join Ethereum, Polygon & Klaytn as the payment options visible in the drop-down “all chains” tab on OpenSea’s “rankings” page.
Solana’s strategy to focus on NFT markets seems to have paid off because on April 6 the layer-1 blockchain network has risen to third place all-time in total NFT sales. However, the latest 30-day amassed data shows Solana amassing $216 million worth of NFT sales.
Decline of Solana’s DApp deposits
Solana’s primary decentralized application (DApp) metric started to display weakness in late March after the network’s total value locked (TVL) dropped below SOL 50 million.
The above chart shows how Solana’s DApp deposits had a 30% decrease in 3 weeks as the indicator reached its lowest level since Sept. 20, 2021. As a comparison, Fantom network deposits grew by 30%, while Terra’s TVL increased by 34% year-to-date.
Neon released an alpha version for the first Solana Ethereum Virtual Machine (EVM) cross-compatibility and scaling solution on April 5 and
Over 1.6 million network addresses currently hold an NFT, Solana announced on April 7.
A DeFi application stood out the crowd
To confirm whether the TVL drop is concerning, one should analyze DApp usage metrics.
On April 8, DappRadar data shows that the number of Solana network addresses interacting with decentralized applications increased by 11% on average.
Orca, a user-friendly decentralized exchange (DEX), was the absolute highlight, amassing 153,290 users.
Even though Solana’s TVL has been hit the hardest compared to similar smart contract platforms, there is solid network use on DeFi and NFT marketplaces, as measured by Magic Eden’s 212,230 active addresses in the last 30 days.
The above data suggest that Solana investors should not worry about the most recent correction. The Solana ecosystem is fueled by the delivery of important milestones toward Ethereum compatibility and NFT market integrations and as long as this happens the potential for further price appreciation seems likely.
The opinions and views expressed here are solely those of the author and do not necessarily reflect the views of NewsPolite. Every trading and investment move involves risk. You should definitely conduct your own research when making a decision.
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