The State of Solana NFTs - February
A data oriented view of Solana NFTs and a look into the most relevant news of the week.
At the time of writing, the Solana market cap is $8.68 billion with a 24-hour volume of $650 million. The price of SOL is $23.00 and its market dominance is 0.79%. The Total Crypto Market Cap is $1.11T, down 1.2%. The NFT transaction volume surpassed 709,661 SOL, closing in on $16M in the last 7 days.
Introduction
In our previous State of the Solana NFTs newsletter, we covered the discussion around the implementation of royalties, the Cets on Creck enlightenment, Bonkz, Claynosaurz, and the Okay Bears new initiative.
Since then, data suggests that the Solana NFT ecosystem is experiencing a slowdown in overall activity. Daily NFT Buyers are decreasing while Sellers increase, in a market that has suffered a liquidity drought of over 50% week-over-week transaction volume.
Although the situation is not as good as it was three weeks ago, some metrics show that a bottom might be in, and we might be witnessing a consolidation period that leads to a new Solana NFT bull run.
Summary
SolanaFloor - SF Index
USD Index
SOL Index
Royalties
Relevant News
Biggest Sale of the Week
Hadeswap acquires SolanaMonkeyBusiness
Catalina Whales partners with Def Jam
Grizzlython gathers thousands of Builders
SolanaFloor releases News Platform
Star Atlas leak gameplay and features
Conclusion
SolanaFloor - SF Index
The SolanaFloor NFT Index consists of a carefully selected basket of Blue Chip collections based on multiple weighted criteria: volume, social trends, age, and other statistics.
The SolanaFloor Chart presents the index in SOL (green) and USD (purple).
The index in SOL terms is a valuable tool for any long-term NFT investor, trader, or researcher. While Technical Analysis is arguably inaccurate for most NFT projects under 4 months of existence, this chart presents a big enough timeframe (Year-to-Date) for valid analysis.
USD INDEX
Today, the USD index sits near the all-time-low-territory. However, data shows that the downtrend might be finally ending. Since the $685 bottom that followed the FTX bankruptcy, the USD index is now at $2540.
The USD index is now 25% higher than before the FTX crash, which provides further indication that the bottom for Solana NFTs might be in, as we enter a new market cycle.
Year-to-Date (YTD), the index has climbed 95%.
SOL INDEX
The SOL index topped at 144 SOL in the first half of January and has been down-trending since. Data suggests a bottom may have been found at 101 SOL, but it is too early to tell, given that the market liquidity on Solana has dried up, after a 50% decline in the past two weeks.
The index is very sensitive to aggressive price movements on the Solana token price. The January token price pump partially explains the devaluation of the SOL index, as the attention turns to trading coins.
Royalties
As Phantom & Metaplex work to implement the pNFT (Programmable NFTs) standard, more collections will enforce royalties as they work to regain one of their most important sources of revenue.
Although some voice concerns over the Metaplex standard, the consensus seems to point at adoption first, discussion later.
Today, almost 30% of buyers/sellers pay full or partial royalties, while 70% don’t.
NFT Highlights of the Week
🏅Biggest Secondary Sale - DeGod #8897, Ranked: 5209
DeGods continues to shine in the Bear Market. Although the Floor Price fell from 600 to 540 SOL, the collection continues to generate the highest daily and weekly volume on the Solana NFT ecosystem.
Hadeswap acquires SolanaMonkeyBusiness
The NFT AMM led by HGE recently acquired one of the most historic Solana NFT collections, SolanaMonkeyBusiness.
Grizzlython gathers thousands of Builders
Grizzlython is already one of the most important events of the year for Solana. The hackathon aiming to connect, assist and gather builders from Solana and other ecosystems, has so far reached over 5,000 registrations.
The event shows how strong the Solana builder ecosystem is, and contradicts several publications claiming that there are only 75 developers.
Catalina Whales partners with Def Jam
Catalina Whales have shown a sign of life with their latest announcement. The Solana NFT Collection partnered with Def Jam to create their first virtual band.
SolanaFloor releases News Platform
SolanaFloor is the leading NFT analytics platform of Solana.
In a move to expand its coverage, SolanaFloor aims to bring the top news and insights to the ecosystem.
Star Atlas leak gameplay and features
Star Atlas is one of the most anticipated blockchain games. The team has recently shared several gameplay and features of their upcoming game, leaving many fans excited and eager to play.
Conclusion
While the traditional and crypto markets try to figure out if the recent price action corresponds to a bear market rally or the start of a new bull cycle, the Solana NFT ecosystem seems to be losing steam after almost a month of strength.
Although certain metrics suggest a slowdown, the Solana NFT ecosystem remains lively, driven by a set of innovative NFT DeFi projects.
Who knows what’s coming in the future? We don’t (yet), but you’ll be the first to know.