Sales volume on Solana’s NFT markets has dropped by more than 13% in the last 30 days.
Solana (SOL) continued its two-week uptrend on March 30, rising in part due to its integration with OpenSea, the world’s largest non-fungible token (NFT) by volume.
SOL price gained 4.5% in the last 24 hours to around $117 per token, its best level since Feb 11, 2022.
The coin’s latest bullish move pushed its two-week returns to over 50%. Nonetheless, the SOL/USD pair is still down 30% year-to-date, with the risk of pulling back as the price tested its 200-day EMA (200-day EMA; the blue wave) near $120 as resistance.
The 200-day EMA coincided with the 0.236 Fibonacci line of the Fibonacci retracement chart, drawn from the $266 high to $75 low. This adds another layer of sell-off risks near $120, which will likely result be a hard level to break.
SOL NFT Transactions Hit a Record
OpenSea’s decision to integrate Solana NFTs into its marketplace on Tuesday could have increased the price of SOL. The rally also coincided with Solana-based NFT markets posting their best day ever in terms of volumes and transactions on March 29, according to data from Dune Analytics.
The total number of transactions executed on these Solana platforms exceeded 57,000. Meanwhile, its net valuation turned out to be around 136,000 SOL, roughly $15.2 million at current prices, making it the highest daily transaction volume observed within the Solana NFT ecosystem to date.
Interestingly, Magic Eden processed about 80% of the total transactions reported on March 29. The NFT marketplace, which recently raised $27 million in a Series A funding round led by Paradigm, has consistently outperformed its peers in the Solana ecosystem since its launch in October 2021.
But…Downward Trend of NFT Sales Volume Continues
Solana NFT markets have underperformed in terms of sales volume despite seeing growth in their transactional activity.
Owner-to-owner NFT sales volume has dropped by more than 13% to $147.41 million in the last 30 days, according to data provided by CryptoSlam. Meanwhile, it is down 30% compared to January’s $202.19 million figure.
However, Solana is not alone with a similar decline in NFT sales on other chains, noted Philip Gunwhy, the sports market partner at NFT Blockasset. He adds that increased crypto regulations in the US and China could have decreased the demand for NFTs.
For example, Ethereum (ETH), the leading smart contract platform that hosts more than 90% of all NFT volumes, saw a nearly 38% decline in sales volumes in the last 30 days, over three times that of Solana.
Other Blockchain projects, including Avalanche (AVAX), Ronin, and Flow, also saw 30% to 60% drops in their NFT sales volume within the same period.
“Clearly, the level of sales is proportional to the number of users, which is currently declining in most markets,” Gunwhy explained.
He concluded that, “The NFT market correlates with investor sentiment rather than fundamental factors, this is a trend that we cannot ignore for the time being.”
By Audy Castaneda
