NFT sales on the Solana network have recently surged to a new local high after months of degraded performance following the crash of the NFT and DeFi industries. This performance is most likely tied to the overall recovery of the cryptocurrency market, which has led to an increase in risk tolerance among investors.
As investors become more willing to take on risk, demand for NFTs has increased, contributing to the surge in NFT sales on the Solana network.
During the last Solana NFT season in late 2021-early 2022 when volume peaked, the number of unique buyers exceeded that of sellers for several months before eventually giving way to the sellers.
— Delphi Digital (@Delphi_Digital) February 11, 2023
In recent months, we've started to see unique buyers outnumber sellers again. 🧐 pic.twitter.com/cK0NFUntxn
Despite the rise in NFT sales, the price performance of SOL has not changed much on the market. This is in contrast to other cryptocurrencies such as Shiba Inu and Cardano, which have experienced significant price movements in recent months. The relative stability of SOL's price despite the growth in NFT sales suggests that the NFT market is still in a stage of recovery and may not yet be fully back to its previous highs.
It is worth noting that the NFT market is highly unpredictable, and prices can change rapidly based on market sentiment and investor behavior. However, the recent increase in NFT sales on the Solana network is a positive sign for the industry and suggests that the NFT market may be on the road to recovery.
Since the end of January, Solana lost more than 20% of its value, showing that the short-term spike in speculative interest toward the asset will not lead to a prolonged recovery rally on the market, especially during the general correction in the industry that the majority of analysts have been waiting for.
Denys Serhiichuk
Tomiwabold Olajide