Solana Surpasses Ethereum in NFT Trading Volume: Exploring SOL’s Potential

Solana has seen a significant surge in daily unique active wallets, jumping by 111% to 2.49 million. DApp volumes on the Solana blockchain have also experienced an 87% increase in the last 24 hours, with a notable rise in NFT trading volumes on the platform.

Data from DappRadar indicates that Solana recorded $83 million in volumes within the last 24 hours, positioning it as the top gainer in DApp volumes among the largest layer 1 blockchains. This growth contrasts with Ethereum, the largest blockchain by DApp volumes, which saw a 30% decline during the same period, despite maintaining dominance in the DApp industry with $4.56 billion in volumes.

The surge in Solana’s network activity aligns with a 111% increase in unique active wallets and a 15% rise in transactions, exceeding 11 million. NFTs are driving this network growth, with platforms like Magic Eden and Tensor NFT marketplace witnessing substantial increases in volumes and user numbers.

Magic Eden, the largest NFT marketplace on Solana, experienced over a 600% surge in volumes, while the Tensor NFT marketplace saw a 95% increase in volumes and nearly 60% growth in users. This growth follows Solana’s impressive $79 million in NFT sales in August, positioning it as the second-largest blockchain by this metric.

Despite the network’s growth, Solana’s native token, SOL, is facing challenges in price performance due to weak buying pressure. The Chaikin Money Flow (CMF) indicator shows a negative value, although it has displayed a higher high, indicating a potential market return. The Moving Average Convergence Divergence (MACD) line remains below the signal line, with red histogram bars signaling bearish control.

SOL has repeatedly tested the support level at $129, emphasizing the importance of maintaining levels above this price for bullish control. To sustain an uptrend, SOL must surpass the next resistance level at $142. However, not all protocols on Solana are experiencing gains, as Total Value Locked (TVL) has dropped by 12% over the past week, decreasing from $5.48 billion to $4.8 billion.

In conclusion, Solana’s network growth driven by NFTs showcases its potential in the blockchain space, despite challenges in SOL’s price performance. The platform’s increasing user base and transaction volumes highlight its growing influence in the decentralized application ecosystem.