The Solana [SOL] blockchain has witnessed a substantial 87% rise in decentralized application (DApp) volumes, likely fueled by increased activity on the Tensor non-fungible token (NFT) marketplace.
DappRadar data revealed that over the last 24 hours, Solana’s volumes reached $83 million, making it the leading gainer in DApp volumes among the top five major layer 1 blockchains.
This increase is particularly noteworthy considering that during the same timeframe, Ethereum [ETH], the largest blockchain in terms of DApp volumes, experienced a 30% decline. Despite this, Ethereum continues to hold dominance in the DApp sector, with $4.56 billion in volumes.
The surge in Solana’s network activity aligns with a rise in user numbers. Solana’s active wallets have grown by 111% to 2.49 million, while transactions have increased by 15% to surpass 11 million.
NFTs Fueling Solana’s Network Expansion
The surge in Solana blockchain volumes can be largely attributed to NFTs. The Magic Eden, the prominent NFT marketplace on Solana, recorded an impressive 600% surge in volumes.
Additionally, the Tensor NFT marketplace witnessed a 95% spike in volumes, while the user base on the platform grew by nearly 60%.
This growth follows Solana NFTs achieving $79 million in sales in August, positioning it as the second-largest blockchain by this metric.
Performance Overview of SOL
Despite the notable expansion of the Solana network, the SOL price is facing challenges in the midst of diminishing demand. Buying pressure remains feeble, as indicated by the negative value of the Chaikin Money Flow (CMF) indicator.
Nevertheless, the index has created a higher high, signaling a resurgence in buyer activity. To confirm an uptrend, it must transition into positive territory.
The weak uptrend is also evident in the Moving Average Convergence Divergence (MACD) line, which currently sits below the signal line. Moreover, the MACD histogram bars are red, indicating 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.
On the other hand, should the uptrend persist, SOL must breach the subsequent resistance level at $142 to further advance in price.
Not all Solana-created protocols are experiencing growth. DeFiLlama data showed a 12% decrease in Total Value Locked (TVL) over the previous week, with SOL’s TVL dropping from $5.48 billion to the current $4.8 billion.