Solana on-chain NFT activity on the upswing

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Solana on-chain NFT activity on the upswing

The on-chain NFT activity of Solana is on the upswing, bringing some crucial signs of recovery for the ailing network.

Messari data shows 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 fallen off a cliff, from more than 100,000 daily transactions in March to less than 20,000 today. The company is also processing around 20,000 NFT transactions daily after tagging 70,000 in February.

Mad Lads is the most recent Solana NFT collection, with more than 35,000 SOL in trading volume, ahead of Claynosaurz and Foxbyte.

The Solana Foundation launched NFT Showdown, a competition for NFTs that aims to influence real-world industries such as gaming, entertainment, and fashion.

The competition's judges are currently evaluating submitted submissions based on their business model, focus on users, creativity, use of Solana technology, and real-world applications. Solana and its ecosystem experienced a significant blow during the bear market.

Solana's popularity quickly grew as a result of its rapid growth, despite the disadvantages of network centralization. While most of the permissionless blockchains can be verified by a wide range of hardware, substantial technical requirements 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 nine months later, Solana's native SOL token traded as low as $8 in January, according to The Defiant terminal.

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

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

In addition to shares in the defunct exchange, the Solana Foundation had invested hundreds of millions into the native tokens of FTX and other SBF-backed projects. FTX's failure resulted in heavy losses for the organization, which had invested millions in the native tokens of FTX and other SBF-backed projects.

While the network's reliability is expected to be improved, Solana's success has been impacted by its frequent outages, although a planned overhaul is expected to improve the network's reliability.