Solana’s NFT market has been struggling recently, with major collections like y00ts moving to Polygon [MATIC]. The shift has been a blow to Solana, which has already seen decreased NFT transaction counts and volumes, according to data from Dune.
However, a recent announcement by Solflare on March 31 could turn the tide in Solana’s favor. The compressed NFTs, which will soon be available on Solana, are expected to play a vital role in NFT scalability.
NFT compression will reduce the cost and storage needs of minting and storing NFTs in the Solana network, making it easier for enterprise customers to activate millions, if not billions, of users. This is an exciting development that could attract more users to the network, as evidenced by the recent increase in the volume of Solana’s NFT marketplace.
so..I bought a jpeg for my birthday 😁🧡 @y00tsNFT @frankdegods #NFTs #y00ts #SOL #Polygon WER HOMIEE? pic.twitter.com/nItVYhAKRR
— T1FF4NY² ⚡️³¹³ ⚡️ (@lizardofshame) April 2, 2023
According to CRYPTOSLAM statistics, Solana’s NFT sales volume increased by more than 60% in the last 24 hours, while the number of buyers also increased. Santiment’s graphic also showed an increase in the number of buyers who bought less than 1k USD of NFTs.
While the NFT market on Solana is showing signs of recovery, the native token SOL may not benefit significantly. The price of SOL has dropped by more than 6% in the last week due to unfavorable market conditions, according to CoinMarketCap.
SOL’s market value is still over $7.8 billion, but LunarCrush data shows that optimistic emotions towards SOL have declined significantly, which could lead to a sustained slump. In addition, Solana’s Binance funding rate has also dropped significantly, indicating decreasing interest in the futures market.
Conclusion
The introduction of compressed NFTs on Solana is a promising development that could help the network recover from its recent troubles. However, the SOL token may continue to face challenges due to unfavorable market conditions. It remains to be seen whether the NFT market on Solana can continue to recover and whether the SOL token can rebound in the near future.
