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Until a few months ago, Solana was a relatively unknown asset and blockchain. The rally, which began in July 2021, increased the altcoin by 713 percent and set a new all-time high of $191.
Since then, the market has been unfavourable to Solana, with the last week causing the most damage. Furthermore, this new development indicated that investors were beginning to shift away from SOL.
Yesterday in an announcement, exchange platform FTX posted that they will be adding Solana’s NFT marketplace to their platform. This move is part of their plans to expand following the launch of NFT marketplaces on the platform last month.
Given that the network grew significantly as a result of the NFT hype in July and August, such news is likely to spark some bullishness in the Solana market. Unfortunately, this was not the case.
SOL saw a 22.3 percent increase at the beginning of October, bringing it very close to its all-time high. However, it has been steadily declining since then. Its price has dropped by more than 17.11 percent in the last 7 days alone, effectively nullifying all of the gains it made at the beginning of the month.
Thus, the lack of positive reaction from investors and the lack of price movement after the announcement made one thing very clear. The NFT hype is actually dying down now. It can be said that is this major factor cannot trigger any bullishness, the chances of other developments doing so can be slim.
So is Solana in danger?
Not necessarily in danger. However, there are certain indications that the token and network are not at their best right now. However, Solana still has some strength. At the moment, spot volumes have dropped below $1 billion, which previously used to be Solana’s average.
Additionally, in less than 48 hours, SOL has seen over $13 million in liquidation from investors.
And the Sharpe Ratio fell to negative 1.44. To make things worse, the development activity which was on a steady rise, fell sharply to the worst levels it has been in 22 months, since January 2020.
But the network still holds institutional interest since more than $12.5 million inflows were registered this week.
So yes, Solana needs to buck up and show that it can do more than just rely on NFTs to build a solid ecosystem. Possibly, some news could come in during the course of the upcoming Solana Breakpoint conference on November 7-10, to turn things around for the better.