- Positive sentiment around Solana skyrocketed in the last week.
- Its price increased by 4% last week, and market indicators were bullish.
Solana’s [SOL] NFT space witnessed a decline over the last 30 days, as evident from several datasets. As per CRYPTOSLAM, Solana NFT sales volume declined by 48% in the last month.
Not only did sales volume decline, but data also revealed that the number of buyers and sellers for SOL NFTs dropped by 33% and 28%, respectively. A similar declining trend was also seen with the total number of transactions, which dipped by 40% last month.
Additionally, Bitcoin [BTC] NFT sales displaced platforms like Solana and Polygon [MATIC].
This can be a game changer for Solana
Though the press time situation looked dire, the future can look quite different as SOL launched its latest feature in the NFT space. Messari, in a latest tweet, pointed out that SOL’s compressed NFTs can revolutionize asset storage and execution.
@Solana‘s state compression is revolutionizing asset storage and execution.
With compressed #NFTs (cNFTs) utilizing concurrent Merkle trees, businesses enjoy low-cost, on-chain storage.
Impressive adoption and 20-40% cost savings make cNFTs a game-changer. pic.twitter.com/6QkGohCab3
— Messari (@MessariCrypto) June 4, 2023
State compression is a new way to store data directly on-chain that cuts down on cost by magnitudes of scale. As per Solana’s official website, projects like user-owned wireless network Helium, NFT distributor DRiP, and on-chain publisher Wordcel are using state compression to bring their scalable, user-first experiences to Solana.
Therefore, considering the benefits state compression brought, its effects might soon be visible on Solana’s NFT metrics.
Solana did not floor the market trend
While most cryptos faced the heat from the bearish market, SOL acted differently. As per CoinMarketCap, SOL’s price has increased by 4% in the last seven days. At the time of writing, SOL was trading at $21.58, with a market capitalization of over $8.5 billion.
A look at Solana’s on-chain metrics sheds light on what went in its favor last week.
For instance, the blockchain’s development activity remained high. The token’s positive sentiment also spiked considerably, which can be attributed to its price surge. Its 1-week price volatility registered an uptick on 4 June, giving hope for a further price pump.
SOL’s price to rise further?
If market indicators are to be believed, the possibility of SOL’s continued price surge seemed likely at the time of writing. The MACD revealed that the bulls were leading the market. Likewise, Solana’s Money Flow Index (MFI) registered an uptick.
Additionally, the Exponential Moving Average (EMA) Ribbon displayed the possibility of a bullish crossover as well.