• Solana (SOL) has had a substantial 48% decline in network activity over the past 30 days. 

• Solana’s blue-chip NFTs witnessed a substantial surge in recent weeks. 

Following the Securities and Exchange Commission’s (SEC) legal action against Coinbase and Binance, the crypto market, especially altcoins, faced adverse consequences. Over time, the repercussions expanded beyond token prices, influencing the interconnected ecosystems.

According to Messari, a prominent provider of market intelligence products for cryptocurrencies that aid professionals in confidently navigating the space, Solana (SOL) encountered significant setbacks due to the SEC’s lawsuit, as indicated by a substantial 48% decline in network activity over the past 30 days. 

Solana’s decentralized exchange (DEX) volumes also experienced a notable decrease, leading to a significant decline in the total value locked (TVL). According to Messari’s data, the ratio of Solana’s TVL to its market capitalization dropped by 20% after news of the lawsuit emerged.

Nevertheless, there were indications of a rebound for certain decentralized exchanges (DEXes), as activity within their networks displayed gradual improvement. According to Dapp Radar’s data, Saber, a prominent DEX on Solana, observed a surge in transaction numbers and increased active wallets. Conversely, Raydium, another DEX, did not witness noteworthy growth in unique active wallets or trading volume over the past week.

Solana’s NFT Ecosystem Get’s The Hit

Shifting the focus to non-fungible tokens (NFTs), Solana’s blue-chip NFTs witnessed a substantial surge in recent weeks. However, despite the attention garnered by these prestigious NFTs, the overall interest in Solana’s NFT ecosystem experienced a decline. Data from Solanafloor revealed a notable decrease in the trading volume of NFTs on the network in recent days. Furthermore, the floor prices of these NFTs also significantly dropped during this period.

These observations indicate that relying solely on the appeal of Solana’s blue-chip NFTs may not be sufficient for driving sustainable growth within the ecosystem. It is also worth noting, With nearly three times the number of sales and a comparable number of buyers, Bitcoin continues to outperform Solana in the NFT sector. However, Bitcoin’s growth momentum has recently slowed, and a significant portion of its sales comprises wash trades. This suggests a potential shift in favor of Solana NFTs. Nevertheless, further data is needed to confirm this trend.

Solana Receives Enhanced Support

In more exciting news for the Solana ecosystem, Beam, a service facilitating the conversion of cryptocurrencies into cash, has made an exciting announcement regarding its support for Solana, a blockchain platform renowned for its rapid transaction speed and cost-effectiveness. Users can seamlessly convert their SPL tokens to USD through Beam’s platform, capitalizing on Solana’s thriving community and minimal transaction fees.

In another development, CUBIK has introduced the first-ever Quadratically Funded Grants Round specifically dedicated to developer tools on the Solana platform. This unique initiative involves matching community contributions quadratically to create a pool of $5,000 USDC.