Solana (SOL) has ceded some of the recent gains, but data suggests that investors should be bullish about the crypto.
On 2nd April 2022, SOL reached a high of 82% following a remarkable rally over the previous 20 days. The positive performance was driven by the recent market news about non-fungible tokens (NFTs). However, the drop of 22.7% is likely to confuse investors.
The upswing started immediately after Coinbase crypto wallet announced its support for SOL and related tokens on 18th March. The exchange also highlighted plans for further integration to connect with NFTs and DApps on the network.
The news about OpenSea integration with the Solana network was also exciting. It meant that Solana would now join Polygon, Ethereum, and Klaytn as one of the visible in the OpenSea’s drop-down all chains and rankings page.
The strategy of focusing on NFT markets appears to have delivered the expected results because its layer-1 blockchain network shot to the third place on the 6th April NFT sales. Over the last 30 days, Solana accumulated about USD 216 million.
- Suggested Reading: OpenSea Now Closing in On Its Support for Solana Non-Fungible Tokens (NFTs)
Solana Decentralized Apps (DApps) Deposits on a Downtrend
Solana’s primary decentralized app metric showed signals of weakness towards the end of March when its network’s total value locked (TVL) slid down below USD 50 million.
Let’s look at the bright side. On 5th April, Neon released its alpha version for the pioneer Solana Ethereum Virtual Machine (EVM) scaling and cross-compatibility solution. Two days later, on 7th April, Sol revealed that more than 1.6 million addresses are at the present holding a non-fungible token (NFT).
Solana DeFi Stands Out from Peers
To determine whether the drop in TVL is important in Sol investing, it is crucial to check the DApp use.
On 8th April, Solana reported an 11% increase in network addresses that interacted with DApps. For example, Orca DApp amassed 153,290 users, which was pretty remarkable.
Although Solana’s TVL has been the worst hit compared to other platforms, its use on NFT and DeFi marketplaces are impressive. Magic Eden reported that Solana had a remarkable 212,230 active addresses in the preceding 30 days.
The information above suggests that investors on Solana should disregard the latest correction. The ecosystem of Solana is built by important milestones towards NFT market integrations and Ethereum compatibility. As long as these take place, the potential for growth is still there.