solana (SUN) hit $143.50 on April 2 after an incredible 82% rally over a 20-day period. This positive performance can be attributed to recent news related to the NFT markets and a rebound across the market, but the current 22.7% drop could confuse investors.
The rally started after Coinbase Wallet added support for SOL and other Solana-based blockchain tokens on March 18. The crypto exchange also outlined plans to “further integrate” with Solana by connecting Coinbase Wallet with decentralized applications (DApps) and non-fungible tokens (NFTs) hosted on the network.
the expectation of OpenSea Integration of the Solana network also excited investors. This means that Solana will join Ethereum, Polygon, and Klaytn as the visible payment options in the "all chains" dropdown tab on OpenSea's "rankings" page.
Solana's strategy of focusing on NFT markets appears to have paid off as the layer 1 blockchain network has risen to 3rd place all-time for total NFT sales on April 6. Furthermore, the latest 30-day rolling data shows Solana amassing $216 million in NFT sales.
Solana DApp repositories are on the decline
Solana's decentralized application (DApp) core metric began showing weakness in late March after the network's total value locked (TVL) fell below SOL 50 million.
The chart above shows how Solana's DApp deposits saw a 30% decline in three weeks as the gauge hit its lowest level since September 20, 2021. By comparison, Terra's TVL is up 34% YTD of the year, while the deposits of the Fantom network grew by 30%.
On the bright side, on April 5, Neon released an alpha version for the first Solana Ethereum Virtual Machine (EVM) cross compatibility and scaling solution and on April 7, Solana announced that more than 1.6 million network addresses currently have an NFT.
One DeFi app stood out from the crowd
To confirm if the TVL drop is of concern, DApp usage metrics should be analyzed.
As DappRadar data from April 8 shows, the number of Solana network addresses interacting with decentralized applications increased by 11% on average. Orca, a user-friendly decentralized exchange (DEX), was the highlight, amassing 153,290 users.
Although Solana's TVL has been hit the hardest compared to similar smart contract platforms, there is strong use of the network in the DeFi and NFT markets, as measured by 212,230 active Magic Eden addresses in the last 30 days. .
The above data suggests that Solana investors should not worry about the latest correction. The Solana ecosystem is fueled by the delivery of major milestones towards Ethereum compatibility and NFT market integrations and as this happens, further price appreciation seems likely.
The views and opinions expressed herein are solely those of the Author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should do your own research when making a decision.
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