Solana Witnesses Sharp Decline in Daily NFT Mints
The daily count of NFT mints on Solana has seen a significant decline, reaching its lowest level since the start of the year, according to data from Hello Moon. As of 8th January, only 19,000 NFTs were minted on the Layer 1 (L1) blockchain network, marking a 44% decrease from the 34,370 NFTs minted just days earlier on 31st December 2023.
NFT Sales and Trading Volume on Solana Take a Hit
The decline in daily NFT mints on Solana is a reflection of the overall fall in user activity on the network since the beginning of the year. In December 2023, Solana experienced a massive rally, driving the number of NFTs minted daily to an all-time high of 414,080 on 15th December. During that same month, NFT sales volume on Solana reached an impressive $366 million, marking the highest monthly sales volume recorded in 2023. However, as the hype around the chain has subsided, both NFT sales count and trading volume have suffered a setback. Data from CryptoSlam shows that this year’s NFT sales volume on Solana currently stands at $79.34 million.
User Activity on Solana Declines, Reflecting Decrease in Demand
The decline in daily NFT mints on Solana aligns with a decrease in demand for the network. On-chain data from Artemis indicates a decrease in user activity on the blockchain. For instance, the number of unique wallet addresses sending at least one on-chain transaction daily has fallen by 9% since 5th January. On that day, Solana had a daily active address count of 691,000, which dropped to 627,000 by 11th January. The decrease in the number of active users on the chain also led to a decline in the daily transaction count, which fell by 7% during the same period, according to Artemis data.
Solana’s Daily Transaction Count and DEX Volume Experience Dip
The decrease in user activity on Solana is evident in the daily transaction count as well. The number of transactions completed on the network has experienced a dip, impacted by the fall in the number of active users. Between 5th and 11th January, the daily transaction count decreased by 7%, as reported by Artemis. Furthermore, the volume of transactions completed through decentralized exchanges (DEXes) housed within the Solana network has also dwindled. During the period under review, DEX volume declined by 40%, reflecting the overall decline in user activity and demand for the network.
Solana’s DeFi TVL Trending Downward Since the Start of the Year
Solana’s DeFi total value locked (TVL) has been on a downward trend since the beginning of the year. According to DefiLlama data, Solana’s TVL was $1.41 billion on 1st January. However, as of now, it stands at $1.29 billion, marking a decrease of 9%. The decrease in TVL further highlights the decrease in demand and user activity on the Solana network.
In conclusion, Solana has witnessed a decline in daily NFT mints, reflecting the overall decrease in demand and user activity on the network since the start of the year. The decrease in NFT sales count, trading volume, daily transactions, DEX volume, and DeFi TVL all point to a waning interest in the Solana ecosystem. The network will need to rekindle excitement and regain user engagement to revive its NFT marketplace and overall ecosystem.
Analyst comment
Negative news.
As an analyst, the decline in daily NFT mints, NFT sales count, trading volume, daily transactions, DEX volume, and DeFi TVL on Solana suggests a decrease in demand and user activity. The network needs to regain user engagement and excitement to revive its NFT marketplace and overall ecosystem.
