The Solana [SOL] blockchain has witnessed a notable increase of more than 87% in decentralized application (DApp) volumes, likely fueled by heightened activity on the Tensor non-fungible token (NFT) marketplace.
Data provided by DappRadar indicates that within the last 24 hours, Solana’s volumes surged to $83 million, marking it as the top performer in terms of DApp volumes among the top five primary layer 1 blockchains.
This increase is particularly remarkable as during the same timeframe, Ethereum [ETH], the leading blockchain in terms of DApp volumes, experienced a 30% decrease. Despite this, Ethereum continues to hold a dominant position in the DApp sector, with volumes amounting to $4.56 billion.
The spike in network activity on Solana also aligns with a rise in the number of users. The unique active wallets on Solana have soared by 111% to reach 2.49 million, while transactions have increased by 15% to surpass 11 million.
Surge in Solana’s Network Growth Driven by NFTs
The surge in Solana’s blockchain volumes seems to be attributed to NFTs. Magic Eden, the largest NFT marketplace on Solana, observed an impressive over 600% surge in volumes.
Additionally, the Tensor NFT marketplace recorded a 95% increase in volumes, along with a nearly 60% rise in the number of users on the platform.
This growth follows the $79 million worth of NFT sales on Solana in August, positioning it as the second-largest blockchain by this measure.
Assessing SOL’s Performance
Despite the substantial network growth on Solana, SOL’s price is facing challenges amidst dwindling demand. The buying pressure remains feeble, evident from the negative value of the Chaikin Money Flow (CMF) indicator.
Nevertheless, the CMF indicator has shown a higher high, indicating a resurgence in buyer interest. To confirm the uptrend, it must transition into the positive territory.
The weak uptrend is also reflected in the Moving Average Convergence Divergence (MACD) line, situated below the signal line. Furthermore, the red MACD histogram bars underscore that bears are maintaining control.
SOL has repeatedly tested the support level at $129. To sustain bullish momentum, the token must maintain levels above this price point.
Conversely, should the uptrend persist, SOL must breach the next resistance level at $142 for further price appreciation.
However, not all protocols built on Solana are experiencing growth. Data from DeFiLlama reveals a 12% decline in Total Value Locked (TVL) over the past week, with SOL’s TVL dropping from $5.48 billion to the current $4.8 billion.