Solana's on-chain NFT activity slows down

Solana's on-chain NFT activity slows down

The on-chain NFT activity of Solana is increasing, resulting in some necessary signs of recovery for the ailing network.

The daily NFT transaction count has doubled from the start of May to sit near 60,000 based on a seven-day moving average.

NFT activity on Ethereum has slowed down, from more than 100,000 daily transactions in March to less than 20,000 today. It's also processing around 20,000 NFT transactions a day after tagging 70,000 in February.

Mad Lads, the top-trending Solana NFT collection, has seen more than 35,000 SOL in trading volume over the last 24 hours, followed by Claynosaurz and Foxbyte.

In May, the Solana Foundation launched the NFT Showdown, a competition for NFTs aimed at influencing real-world industries like gaming, entertainment, and fashion.

The judges of the competition are currently evaluating submittals based on their business model, focus on users, creativity, use of Solana technology, and real-world applications. In the bear market, Solana and its ecosystem took a thorough beating.

Solana became popular for its speed in 2021, but it paid for its network centralization at the cost of network centralization. While a wide variety of hardware canvalid most permissionless blockchains, hefty technical regulations resulted in Solana's validators mostly consisting of data center operators.

After rocketing from $1.5 at the start of 2021 to more than $250, Solana's native SOL token was traded in January for less than $8, according to The Defiant.

In November 2022, the catastrophic collapse of Sam Bankman-Fried's FTX exchange and Alameda Research trading company resulted in an additional 65% crash for SOL.

Solana's DeFi ecosystem also collapsed, crashing from $10B in November 2021 to less than $1B one year later, fire tanking a further 70% within three weeks of FTX's failure, according to DeFi Llama.

The Solana Foundation had invested hundreds of millions into the native tokens of FTX and other SBF-backed projects in addition to shares in the defunct exchange, resulting in heavy losses for the organization.

Although the network's reliability has been improved, Solana's performance has been hindered by its frequent outages, which are expected to improve.