Solana (SOL) continued its two-week uptrend on March 30 as a result of its integration with OpenSea, the world’s biggest NFT marketplace by volume.
SOL’s price has surged to multi-week highs. SOL’s price has gained 4.5 percent in the previous 24 hours to almost $117 per token, its highest level since February 11, 2022.
The coin’s most recent upward rise increased its two-week paper returns to moreover 50%. Nonetheless, SOL/USD is down 30% year to date, raising the prospect of a drop as the price approached the 200-day exponential moving average (200-day EMA; the blue wave) near $120 as resistance.
The 0.236 Fibonacci retracement line on the Fibonacci retracement graph, drawn from the swing high of $266 to the swing low of $75, matched the 200-day EMA. This raises the prospect of a $120 selloff, which will most certainly be impossible to overcome.
The volume of SOL NFT transactions is at an all-time high.
OpenSea’s decision to add Solana’s NFTs to its marketplace on March 29 may have increased SOL’s cost. According to Dune Analytics data, the rise coincided with Solana-based NFT platforms seeing their busiest day in terms of volumes and transactions on March 29.
Across these Solana platforms, a total of 57,000 transactions were conducted. Meanwhile, at the time of writing, their net value was around 136,000 SOL, or approximately $15.2 million, making it the largest daily transaction volume ever witnessed in Solana’s NFT ecosystem.
On March 29, Magic Eden handled over 80% of all recorded transactions. Since its launch in October 2021, the NFT marketplace has consistently outperformed its peers throughout the Solana ecosystem, recently raising $27 million in a Series A investment round led by Paradigm.
However, the decline in NFT sales volume persists.
In terms of sales volume, the Solana NFT markets have underperformed despite increasing transactional activity.
According to CryptoSlam data, the owner-to-owner NFT sales volume has dropped by more than 13% in the previous 30 days to $147.41 million. Meanwhile, it’s down 30% from January’s total of $202.19 million.
Solana is not alone in seeing a reduction in NFT sales, according to Philip Gunwhy, a partner at sports NFT marketplace Blockasset. Increased crypto legislation in the United States and China, he claims, may have impacted demand for NFTs even more.
For example, Ethereum (ETH), the main smart contract platform that handles more than 90 percent of all NFT transactions, has had a 38 percent reduction in sales volumes in the preceding 30 days, over three times that of Solana.
Other blockchain ventures, such as Avalanche (AVAX), Ronin, and Flow, had their NFT sales volume fall by 30% to 60% within the same period.
“The level of sales is proportional to the number of users, which is currently decreasing in the majority of marketplaces,” Gunwhy explained.
“NFT market correlates with investor sentiment rather than fundamental factors, this is a trend that we cannot ignore for the time being.”
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