- Solana witnessed a massive decline in revenues over the past quarter.
- Interest in Solana NFTs declined, however, price surged.
Solana [SOL] has been one of the networks that saw a massive surge in interest over the last few months. Even with this, Solana had some problems in the first quarter of 2024.
Some problems ahead
A review of top blockchains in Q1 2024 revealed a mixed bag of financial performance. Notably, Ethereum [ETH] emerged as the champion with a profit of $369 million, followed by Tron [TRX] at $71.8 million.
BNB Chain also turned a profit, but at a much smaller scale of $6.6 million.
However, on the flip side, Solana and Bitcoin [BTC] suffered significant losses, with Solana suffering losses of $796 million, and Bitcoin, a staggering $4.5 billion.
Source: X
At press time, the number of daily active addresses on the Solana network had started to decline. Over the last few weeks, the number of daily active addresses on the network fell from 2.4 million to 1.1 million.
Additionally, the number of daily transactions occurring on the network also plummeted.
AMBCrypto’s analysis of Artemis’ data also indicated that the number of transactions occurring on the Solana network had also fallen from 40 million to 19 million in the last few days.
This decline in activity on the Solana network can negatively impact the protocol’s ability to generate revenue in the future.
Source: Token Terminal
NFT sector sees trouble
In the NFT sector as well, it was seen that Solana was struggling. AMBCrypto’s examination of Solanafloor data revealed that the interest in blue chip Solana NFT collections had declined.
This suggested that users were more interested in other activities such as DEXes or meme coins while interacting with the Solana network.
Source: Solana Floor
Read Solana’s [SOL] Price Prediction 2024-25
Despite these factors, SOL was doing relatively well in terms of price. At press time, SOL was trading at $151.27 and its price had grown by 4.87% in the last 24 hours.
However, the volume it was trading at had fallen by 34.85% during the same period, which could cause problems for SOL’s price trajectory going forward.
Source: Santiment
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