2 years ago
Solana saw 2 affirmative developments this week with the motorboat of the Saga Android-based smartphone powered by Solana blockchain and the retail trading debut of Grayscale’s Solana Trust shares.
The developments on with bullishness successful the broader market, boosted the terms of SOL by 29.05% from April 11 to a monthly precocious of $26.03.
While the mobile motorboat positively boosts the Solana ecosystem, the Saga telephone appears overpriced astatine implicit $1,000 apiece. Nevertheless, the smartphone received affirmative reviews successful idiosyncratic acquisition and quality.
Independent cryptocurrency investor, Amy Wu, noted that “Saga-exclusive dApps, games, and rewards arsenic the telephone ships globally, which volition besides marque it easier to warrant the $1,000 premium price.” It remains to beryllium seen however the Solana Foundation leads the selling efforts for the telephone against existing giants similar Samsung and Apple.
The Grayscale money has lone $2.9 million successful assets nether absorption (AUM) successful the Solana Fund, which is considerably little compared to the 24-hour regular trading measurement of SOL, which surpassed $500 million, to person an interaction connected price.
There are besides informing signs of deficiency of maturation crossed on-chain metrics and bullishness crossed the derivatives market, threatening a steep correction.
NFTs transportation the Solana ecosystem
The fig of regular transactions connected Solana reached a caller all-time precocious successful April, showing a accordant uptrend. However, the regular progressive accounts person dipped to caller lows, which raises immoderate concerns.
Solana regular progressive accounts and fig of transactions. Source: NansenSolana’s DeFi ecosystem subsided aft FTX’s collapse, with important liquidity drained. The full deposits connected Solana DeFi applications are little than $300 million, with Solana knocked retired of the apical 10 DeFi blockchains by liquidity worth locked, per DeFiLlama.
DeFi usage crossed the Solana ecosystem has been constricted to liquidity staking protocols, with decentralized exchanges and lending protocols taking a backseat. It appears that NFTs are carrying the ecosystem.
Solana’s marketplace stock successful NFT trading roseate from 6% to 14% of full NFT income measurement successful little than a twelvemonth by February 2023, according to a Delphi Digital report. It is the second-largest NFT ecosystem aft Ethereum. The study added,
“The Solana NFT ecosystem is driven by traders who are much financially incentivized and commercialized a batch much often compared to Ethereum NFT users.” However, the NFT trading volumes person declined since February 2023 beneath the November 2022 level, which is simply a discouraging sign.
NFT trading volumes connected Solana marketplaces. Source: NansenAdditionally, the astute wealth enactment has besides compressed importantly with less spendings and gains made by “smart money” wallets. Nansen tags prolific and progressive trading addresses arsenic “smart money.”
Smart wealth gross (blue), spending (red), and nett wealth travel (green). Source: NansenSolana terms action
The Open Interest (OI) volumes for SOL futures, which represents the fig of unfastened positions for SOL contracts, surged toward a 2023 precocious with a spike from $239 cardinal to $365 cardinal successful the 48-hours pursuing April 11, according to information from Coinglass.
The emergence successful SOL’s terms coincides with the OI measurement surge, suggesting that derivatives volumes are driving the latest uptrend.
Open Interest measurement for SOL futures contracts. Source: coinglassThe emergence successful OI volumes besides travel a surge successful the backing rates for perpetual swap contracts, suggesting that leverage traders are bullish connected the token. This is simply a bearish contrarian awesome arsenic the marketplace usually runs the stops of crowded perpetual orders.
Funding complaint for SOL perpetual swaps. Source: CoinglassThe SOL/USD brace faces absorption from the 50-day exponential moving mean (EMA) astatine $25.40 and the 2022 breakdown levels astir $29.76. The Moving Average Convergence Divergence (MACD) indicator, a momentum indicator, shows a divergence betwixt the terms surge and the MACD indicator, hinting astatine a imaginable pullback. Support for the brace lies astir the $20 level.
Related: SOL terms risks 20% driblet contempt Grayscale Solana Trust’s retail debut
SOL/USD terms chart. Source: TradingViewThe Solana ecosystem's maturation successful NFT trading volumes has been impressive, but it has declined since February 2023, and the astute wealth enactment has compressed significantly.
The emergence successful unfastened involvement volumes for SOL futures and backing rates for perpetual swap contracts whitethorn suggest that derivatives volumes are driving the latest uptrend. Overall, portion Solana has had affirmative developments, it remains to beryllium seen however the ecosystem volition prolong the terms growth.
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