- The Solana ecosystem experiences a 48% drop in network activity following the SEC’s lawsuit against Coinbase and Binance.
- DEX volumes and NFT trading on Solana are significantly impacted, although some DEXes like Saber show signs of recovery.
The reverberations of the SEC lawsuit against Coinbase and Binance continue to permeate the world of cryptocurrencies, particularly altcoins like Solana [SOL]. While the initial shockwaves hit token prices, the effects have extended to the ecosystems surrounding these cryptocurrencies, deeply disrupting their operation and performance.
In the eye of this storm, Solana has been hit hard. Data compiled by Messari paints a grim picture, revealing a 48% reduction in network activity in the last month. Furthermore, the repercussions of the lawsuit have trickled down to Decentralized Exchanges (DEXes) operating within the Solana ecosystem, leading to a substantial drop in the total value locked (TVL). A stark decline of 20% in Solana’s TVL to market cap ratio post-lawsuit provides a telling illustration of the impact.
Notwithstanding this bleak scenario, signs of recovery are visible for certain DEXes. Data from Dapp Radar signals a resurgence in transaction numbers on Saber, a DEX under the Solana umbrella. Alongside this, there has also been a noticeable uptick in the count of active wallets. However, this revival story doesn’t echo for all DEXes, with Raydium, another prominent DEX, failing to register any significant growth in the number of unique active wallets or trading volume over the past week.
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Turning to the Non-Fungible Token (NFT) sphere, a similar downturn trend is discernible. Although Solana’s blue-chip NFTs have enjoyed a surge in recent weeks, it hasn’t been enough to offset the declining overall interest in the Solana NFT ecosystem. This has been substantiated by solanafloor data, which underscores a considerable drop in the volume of NFTs traded on the network and a marked decline in these NFTs’ floor prices. This infers that the popularity of Solana’s blue-chip NFTs alone is inadequate to steer the ecosystem towards long-term growth.
At the time of writing, SOL is trading at $16.89, reflecting a significant plunge in its value. This decline is mirrored by a steep drop in SOL’s trading volume, as per data from Santiment. The development front, meanwhile, seems to have hit a slow stride, with a sharp drop in activity indicating that major updates or upgrades to the Solana network might not be on the immediate horizon.
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