Blockhain layer-1 (SOL) Solana prices drop by double digits as NFT activity has dropped in the last 24 hours.
As the Solana Breakpoint event concludes, the token’s bullish price activity comes to a stop.
Even though Google Cloud will start hosting the Solana validator, the price of tokens that support fast layer-1 blockchains has dropped by more than 10%.
According to Coingecko data, the value of Ethereum Killer’s so-called native currency, SOL, has dropped approximately 12% in the last 24 hours.
Solana is a layer-1 proof-of-stake (PoS) blockchain that provides many of the same services as Ethereum, including decentralized finance (DeFi) applications and non-fungible currencies (NFT).
SOL decreased from $36.29 to $31.02 on Monday morning. Since then, it has made a minor rally, reaching $31.80 at the time of publication. During the same time period, trading volume fell by 19.22% to $2.77 billion.
Solana’s weekly gains were obliterated by today’s adverse price movement, sending it down 4.2% for the week. SOL remains down 87.8% from its all-time high of $259.96 set a year ago.
According to Coinglass statistics, more than $8.37 million in Solana futures positions were liquidated in the last 24 hours. Long burst trades accounted for the majority of liquidations (85.14%).
Green bars represent long exploding transactions. Coinglass is the source.
With a market cap of over $11.29 billion, SOL is currently the tenth largest cryptocurrency, having fallen behind Elon Musk’s favorite cryptocurrency, Dogecoin.
What drives Solana prices drop?
SOL’s recent adverse price behavior coincided with a drop in volume in Solana-based NFTs. NFTs were critical to the success of the blockchain earlier this year.
Returning NFT purchases on Solana have dropped dramatically, according to Nansen statistics, to levels not seen since November 2021. Returning NFT buyers show that investor interest in the network is expanding.
On the other hand, the number of first-time buyers declined to 6,097 yesterday from 17,090 on October 28, 2022.
Aside from returning and first-time consumers, overall Solana NFT purchases have decreased dramatically in the last four weeks.
During the second week of September, transactions reached an all-time high of 650,000.
However, the value has fallen precipitously since then, with the network executing approximately 160,000 NFT transactions as of November 7.
Solana token falls, along with the rest of the cryptocurrency market, has taken a major hit over the past day.
Over the same time period, the industry’s market value fell by more than 3% to a little over $1.02 trillion.
Bitcoin (BTC) and Ethereum (ETH) have also dropped 2.52% and 3.87%, respectively, in the last 24 hours.