Solana NFT Marketplace Integration and DApp Metrics Shine Even After SOL’s 20% Drop

Solana (SOL) price touched $143.50 on April 2nd after an incredible rally of 82% over 20 days. This positive performance can be attributed to recent NFT markets and a market-wide rally, but the current 22.7% drop may confuse investors.

Solana/USDT on FTX. Source: TradingView

The rally began after Coinbase Wallet added support for SOL and other Solana-based blockchain tokens on March 18. The crypto exchange also outlined plans for “further integration” with Solana, using the Coinbase wallet with the decentralized applications (DApps) and non-fungible tokens (NFTs) hosted on the network.

Investors were also excited by the anticipation of OpenSea integrating the Solana network. This means that Solana will join Ethereum, Polygon and Klaytn as payment options visible in the All Chains drop-down tab on OpenSea’s “Leadership” page.

Solana’s strategy to focus on NFT markets appears to have paid off, as the Layer 1 blockchain network rose to third all-time in total NFT sales as of April 6. In addition, the latest 30-day cumulative data shows that Solana has amassed $216 million worth of NFT sales.

Solana’s DApp deposits are declining

Solana’s primary decentralized application (DApp) metric began showing weakness in late March after the network’s total locked value (TVL) fell below 50 million SOL.

Solana Network Total Value Locked, SOL. Source: Defillama

The chart above shows how Solana’s DApp deposits fell by 30% in three weeks as the indicator touched its lowest level since September 20, 2021. For comparison, Terra’s TVL is up 34% year-to-date, while Fantom network deposits grew 30%.

On the bright side, on April 5th, Neon released an alpha version for the first Solana Ethereum Virtual Machine (EVM) cross-compatibility and scaling solution, and on April 7th, Solana announced the end 1.6 million network addresses currently have an NFT.

One DeFi application stood out from the crowd

To confirm whether the TVL drop is a concern, one should analyze the DApp usage metrics.

Solana DApps 30 days on-chain data. Source: DappRadar

As data from DappRadar as of April 8 showed, the number of Solana network addresses interacting with decentralized applications increased by an average of 11%. Orca, a user-friendly decentralized exchange (DEX), was the absolute highlight with 153,290 users.

Although Solana’s TVL has been hit the hardest compared to similar smart contract platforms, there is solid network usage across the DeFi and NFT marketplaces, as measured by Magic Eden’s 212,230 active addresses over the past 30 days.

The data above suggests that Solana investors shouldn’t worry about the recent correction. The Solana ecosystem is fueled by the delivery of key milestones towards Ethereum compatibility and NFT market integrations, and as long as this happens, the potential for further price increases seems likely.

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