CRYPT — The crypto market, and altcoins in particular, have been hit hard by the Securities and Exchange Commission (SEC) lawsuit against Coinbase and Binance. Eventually, the effects spread beyond token prices alone, affecting related ecosystems as a whole.
Messari, a leading provider of cryptocurrency market intelligence products that help professionals navigate the space with confidence, reports a significant 48% drop in network activity for Solana ( SOL) in the past 30 days as a direct result of the SEC lawsuit.
The Total Value Locked (TVL) of the Solana Network also decreased significantly due to a drop in Decentralized Exchange (DEX) volumes. Solana’s TVL to market capitalization ratio fell 20% after the case went public, according to statistics provided by Messari. However, there were signs of a comeback for some decentralized exchanges (DEXs) as network activity within these DEXs showed gradual improvement. Dapp Radar reports that Saber, a notable DEX on Solana, has seen an increase in trading volume and wallet activity.
However, another DEX called Raydium has not seen significant growth in unique active wallets or trading volume over the past week. With the spotlight now on NFTs, Solana’s top-tier NFTs have seen a significant increase in value over the past few weeks. Despite the hype surrounding these notable NFTs, Solana’s NFT ecosystem as a whole has seen a decline in popularity. According to data from Solanafloor, the number of NFT transactions performed on the network has decreased significantly in recent days.
Furthermore, throughout this period, the floor prices of these NFTs fell substantially. Based on these results, it seems that trusting Solana’s top-notch NFTs may not be the best strategy for ensuring the long-term health and growth of the ecosystem.
It is also worth mentioning that Bitcoin remains superior to Solana in the NFT market, with about three times more sales and a similar number of buyers. Bitcoin’s growth has slowed lately, and a significant portion of its sales are made up of washout transactions. This may indicate a change in preference for Solana NFTs. However, this trend needs to be confirmed by more data.