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- Solana has recently experienced a surge in Non-Fungible Token (NFT) transactions, surpassing Ethereum and Polygon in transaction volume.
- The number of core developers on the network has reduced, and there is a question of whether the platform can keep going in the long term
Solana, the blockchain platform known for its high-speed transactions and growing popularity, has recently experienced a surge in Non-Fungible Token (NFT) transactions, surpassing Ethereum and Polygon in transaction volume.
Solana recorded over 1.2 million transactions in the NFT space within the last seven days alone, thus affirming its authority in this realm. The NFT transaction increase is among the key factors driving the popularity of Solana, presenting its potential beyond the meme coins on the network. Solana’s performance has attracted the attention of investors, consolidating their confidence in long-term opportunities.
⚡️ #Solana #NFT landscape recorded the highest amount of unique wallets with 1.2M+ transactions in the last 7D to lead all other top blockchains!
Are NFTs making a comeback? I read you 👇 pic.twitter.com/qf33fx1eVh
— Crypto Rand (@crypto_rand) April 21, 2024
Although Solana has demonstrated an impressive performance in the NFT space, the platform encounters challenges in other sectors. Although revenue grew by 33.33% over the last month, there has been a small decrease in the number of active users on the network, demonstrating possible issues with user retention. Moreover, DEX volumes and total value locked (TVL) on Solana have slightly dropped, maybe because the interest in memecoins on the platform has started to wane.
Developer Activity and Sentiment Decline
However, upon further inspection of Solana’s GitHub repository, a 35% reduction in code commits is found, which may imply development activity. In addition, the number of core developers on the network has also reduced, and there is a question of whether the platform can keep going in the long term. Although Solana delivered a stunning performance, the price dropped considerably by 13.61% last month, accompanied by a decrease in social volume and weighted sentiment. The change of sentiment is likely to occur due to shifting investor perceptions and hinder Solana from reaching new highs in the future.
The fact that the problems with the network congestion are persistent, the developers within the Solana ecosystem have managed to roll out quite a few updates that should relive the pressure from the blockchain. Of these updates, version 1.17.31 is the most essential one that changes the way validators of some type are treated based on their stakes. The release follows the urgent call to action from Solana for the validators to adopt the new version quickly.
.@Solana MainnetBeta validators: the v1.17.31 release is now recommended for general use. This patch contains enhancements which will help alleviate some of the ongoing network congestion, and will be followed by further enhancements in v1.18.
Please upgrade when there's less…
— Anza (@anza_xyz) April 15, 2024
Version 1.17.31 introduces significant changes in how the Solana software interacts with validators, particularly those with lower stakes. Additionally, the update addresses issues related to the QUIC transport protocol, a suspected contributor to the network congestion plaguing Solana in recent weeks. As a result of these updates, nearly 90% of validators have already transitioned to the new software, signaling widespread acceptance within the Solana community.
Price Analysis
Solana (SOL) has shown some signs of recovery after the market collapsed last week. Dropping below its $210 peak in mid-March, SOL experienced a remarkable recovery. On April 20, the price was somewhere in the region of $150. SOL burst through this level on April 22, hitting an all-time high of $157. As of this writing Solana is currently trading at $154 with a 24-hour increase of 2%.
The upward movement also gave rise to speculations as to whether it will be possible for the digital currency to recover more of its lost value and maintain the upward trend in the short term. Solana intends to stay strong and formidable in the blockchain market through ongoing NFT developments and efforts to solve user retention and developer activity.
