Going short on SOL? You may want to consider what is at ‘stake’
- Solana’s transaction fees declined along with its development activity
- Solana lost interest from stakers as well
Solana’s transaction fees declined over the past year, according to new data by token terminal. Reportedly, after the FTX collapse, $946.66k was collected in fees over the past 30 days. Out of this, $473.33k was paid to SOL stakers, a number that declined by 41.3% over the last year.
This decline in revenue could thus have a negative impact on SOL.
Due to the FTX/Alameda Crash, Solana transaction fees were $946.66k over the past 30 days, of which $473.33k was paid to SOL stakers, down 41.43% year-over-year.https://t.co/XLitGsNLMp
— Wu Blockchain (@WuBlockchain) December 3, 2022
Read Solana’s [SOL] Price Prediction 2023-2024
A lot at “stake”
According to Staking Rewards, the number of stakers on the network fell by 0.46% in the last month. As of 3 December, there were more than 577,000 stakers on the Solana network.
Source: Staking Rewards
Furthermore, Solana‘s development activity decreased significantly as well, with crypto protocols such as Cosmos [ATOM], Kusama, and Uniswap [UNI] outperforming it.
Solana NFTs to the rescue
Amidst all the chaos, Solana‘s saving grace remained its growing NFT market. From the image given below, it can be observed that the volume of Solana NFTs grew significantly despite the bear market.
However, the overall floor price of Solana NFTs declined. Moreover, according to Solana floor, the number of NFT traders fell from 16k to 1.8k in the last three months.
Only time well whether Solana will continue its NFT growth amidst all the external circumstances and FUD.
Source: solana floor
A quick glance at the SOL data
Activity on SOL‘s network declined massively, along with the network’s transaction count. According to data from Dune Analytics, the number of transactions on the network decreased from 42 million to 25 million over the last four months.
Source: Dune Analytics
As of 3 December, SOL was trading at $13.57, as its price rose by 0.20% between 2 and 3 December. Additionally, its market cap dominance fell significantly over the last seven days, falling by 7.32%. Lastly, Solana captured 0.67% of the overall crypto market.
However, at press time, SOL exchanged hands at $13.45 and witnessed a 1.38% decline in the last 24 hours.
