SOL Explodes! On-chain & Derivatives Data Shock
According to recent news, the price of Solana rose by 30%. But no chain data highlights that the growth challenges of the network stopped Solana from going up.
This week, Solana faces 2 positive developments. This development involves the retail trading debut of Grayscale Solana Trust shares and the saga launch of the Solana blockchain-powered Android phone.
- Solana’s price rose by 30%, but on-chain data suggests that network growth challenges limited the rise.
- Grayscale Solana Trust has only $2.9 million in assets, which is low compared to SOL’s daily trading volume of $500 million and doesn’t affect the price.
- NFTs support the Solana ecosystem, with the number of transactions increasing in April, although the number of daily active accounts dropped.
- Solana’s DeFi ecosystem faced liquidity issues after the collapse of FTX, but it remains supported by NFT trading and staking.
- Delphi Digital predicts Solana’s NFT trading volume will rise from 6% to 14% by February 2023, making it the second-largest ecosystem after ETH.
From April 11, developments in the broader market and confidence enhance Solana’s price to a monthly high of $26.03 by 29.05%.
NFT Net Explorer announced on Twitter that Solana’s on-chain and derivatives highlight the high pricing potential of SOL’s limitation.
While the initiation of mobile enhances the ecosystem of Solana positively, at over $1000 apiece, Saga appeared as the overpriced phone. This smartphone also received positive responses in quality and user experience.
Amy Booth, the independent cryptocurrency investor, highlights many opportunities for launching the phone globally. These opportunities involve rewards, Saga Exclusive dapps, and games. Of these opportunities, it is easy to justify the $1k premium price.
There are only $2.9 million in assets of Grayscale Solana Trust under the management. This is low compared to the daily trading volume of the SOL, which is %500 million better and doesn’t impact the price.
News Peak announced on Twitter that the price of SOL rose by 30%, but on-chain data highlights that the network’s growth challenges stop this rise.
How do NFTs carry the Solana ecosystem? In April, the number of transactions on Solana reached so high showing a consistent increment. However, the number of daily active accounts drops, resulting in some concern.
After the collapse of FTX, Solana’s decentralized finance ecosystem (DeFi) fell with significant liquidity drained, and the total number of deposits on the Solana DeFi applications is less than $300 million. But Lana knocked out 10 DeFi blockchains by draining liquidity.
Moreover, across the Solana ecosystem, only liquidity staking protocol used DeFi. It shows that non-fungible tokens and NFTs support the ecosystem.
According to the Delphi Digital Report, By February 2023, Solana Markets will rise from 6% to 14% in NFT trading. So, it is the second largest ecosystem after the ETH.
According to the report, the traders who drive the Solana NFT ecosystem are more financially incentivized. They trade on a large scale as compared to the users of Ethereum NFT.
Bitcoin Alerts announced that the warning signs across non-chain metrics are present, threatening a steep correction.
However, since February 2023, the trading volume of NFT has fallen below November 2022. This is so depressing point. Additionally, the activity of smart money squeezes due to the gains and spending of smart money wallets. Nansen refers to smart money as active and prolific trading.
Let’s see the Solana price action. According to the Coinglass data, the open interest volume for SOL’s future surged high from $239 million to $ 365 million in 48 hours.
The resistance of SOL/USD pair faces comes from the breakdown of 2022 and reaches $29.76 after moving an exponential average of $25.40. the convergence and divergence (MACD) represent the divergence between the MACD indicator and Surge price.
However, the growth of the Solana ecosystem is impressive in NFT trading. Also, Solana had positive development.