- Solana’s DeFi performance declined, with falling volumes and reduced activity on the protocol.
- However, Solana witnessed growth in NFTs and social engagement, while stakers remain hopeful.
The Solana network has faced major issues in the past related to downtime, resulting in a loss of trust from many crypto users. However, recent improvements in activity on the protocol offer a glimmer of hope for its resurgence in the market.
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Troubles in the Defi sector
Despite witnessing increased activity on the Solana network, the protocol has failed to make significant strides in the DeFi space.
According to data from Messari, Solana’s performance has experienced a notable decline over the past few months. This downturn can be attributed to falling volumes in decentralized exchanges (DEXs) operating on the network.
Source: Messari
This underperformance in the DeFi sector has significant implications for Solana’s future growth. Data from Dapp Radar indicates a 29.12% decrease in unique active wallets on the protocol in the last month, accompanied by a substantial 34.79% drop in transaction volume.
On the other hand, the protocol has witnessed a surge of interest in blue chip NFTs, indicating potential growth in the NFT sector. Solana Floor’s data reveals a considerable rise in trading volumes for blue chip NFTs, which points to a promising trend within the protocol’s ecosystem.
Source: Solana Floor
The social angle
In terms of social engagement, Solana has experienced a significant uptick in mentions and engagements across various platforms. LunarCrush’s data highlighted a 45.6% increase in social mentions and a remarkable 53.5% rise in social engagements over the past week.
The growing social activity around Solana signifies a heightened interest and attention from users and enthusiasts.
However, despite the growing popularity, sentiment around the protocol has taken a negative turn. Data from Santiment indicates a significant decline in weighted sentiment, which aligns with a drop in the price of SOL.
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This decline in sentiment could be attributed to the recent lawsuit filed by the Securities and Exchange Commission (SEC), which has cast a shadow of uncertainty over Solana’s future prospects.
Source: Santiment
Nevertheless, stakers within the community remain hopeful and committed to the protocol. Data from Staking Rewards reveals a 10.25% increase in the number of addresses staking Solana over the past week, suggesting continued confidence in the long-term potential of the network.
Source: Staking Rewards
