- Solana witnessed a huge decline in sales last quarter.
- Interest in Solana NFTs waned, but the price rose.
Solana [SOL] is one of the networks that has seen a huge increase in interest in recent months. Even with this, Solana had some issues in the first quarter of 2024.
Some trouble ahead
A review of the top blockchains in the first quarter of 2024 revealed a mixed bag of financial performance. Particularly Ethereum [ETH] emerged as champion with earnings of $369 million, followed by Tron [TRX] at $71.8 million.
BNB Chain also made a profit, but on a much smaller scale of $6.6 million.
On the other hand, Solana and Bitcoin [BTC] suffered significant losses, with Solana suffering losses of $796 million, and Bitcoin, as much as $4.5 billion.
Source:
At the time of writing, the number of daily active addresses on the Solana network had begun to decline. In recent weeks, the number of daily active addresses on the network has fallen from 2.4 million to 1.1 million.
In addition, the number of daily transactions on the network also decreased.
AMBCrypto’s analysis of Artemis data also indicated that the number of transactions on the Solana network had also fallen from 40 million to 19 million in recent days.
This decrease in activity on the Solana network could negatively impact the protocol’s ability to generate revenue in the future.
Source: Token terminal
The NFT sector sees problems
Solana was also struggling in the NFT sector. AMBCrypto’s examination of Solanafloor data found that interest in the blue chip Solana NFT collections had waned.
This suggested that users were more interested in other activities, such as DEXs or meme coins, while interacting with the Solana network.
Source: Solana Floor
Read Solana’s [SOL] Price forecast 2024-25
Despite these factors, SOL did relatively well price-wise. At the time of writing, SOL was trading at $151.27 and its price was up 4.87% in the last 24 hours.
However, its trading volume was down 34.85% over the same period, which could spell trouble for SOL’s price trajectory going forward.
Source: Santiment