Solana [SOL] Blockchain Sees Over 87% Increase in DApp Volumes, Driven by Rising NFT Activity

The Solana [SOL] blockchain has seen an over 87% increase in decentralized application (DApp) volumes, likely driven by rising activity on the Tensor non-fungible token (NFT) marketplace.

Solana [SOL] was the clear standout performer among the top five layer 1 blockchains on 2 October. According to data from DappRadar, over the last 24 hours, decentralized application (DApp) volumes on Solana reached $83 million.

This gain is particularly noteworthy when compared to the 30% decrease in DApp volumes observed on Ethereum [ETH], the leading blockchain in this domain, during the same time frame. Despite this setback, Ethereum continues to lead the DApp industry with $4.56 billion in volumes.

Solana’s remarkable growth is further highlighted by the 111% increase in unique active wallets, which now total 2.49 million, and the 15% rise in transactions, which now exceed 11 million.

NFTs propel Solana’s network expansion

An analysis of the contributing factors revealed that Non-Fungible Tokens (NFTs) played a pivotal role in driving up Solana’s network activity. Magic Eden, the leading NFT marketplace on Solana, experienced an exceptional surge of over 600% in volumes.

Additionally, the Tensor NFT marketplace also saw a remarkable 95% increase in volumes, while the number of users on the marketplace rose by nearly 60%.

These gains follow Solana NFTs generating $79 million in NFT sales during August, ranking it as the second-largest blockchain in this metric.

While the Solana network has seen substantial growth, the SOL price struggled amid waning demand. The Chaikin Money Flow (CMF) indicator remained negative, reflecting a weaker uptrend.

However, the indicator did form a higher high, indicating some buying pressure returning to the market. For a bullish trend confirmation, the index needs to cross into positive territory.

This weaker uptrend is also evident from the Moving Average Convergence Divergence (MACD) line, which remained below the signal line, and the MACD histogram bars, which were red, further indicating a bear presence.

SOL has repeatedly tested the support level at $129. For the bulls to maintain control, the token needs to hold levels above this price.

SOL’s market cap in BTC’s terms—is it realistic?

On the other hand, if the uptrend continues, SOL needs to break the next resistance level at $142 for the price to continue gaining momentum.

Not all protocols built on Solana are seeing gains. According to data from DeFiLlama, the Total Value Locked (TVL) has decreased by 12% over the last week. Commensurately, SOL’s TVL has dropped from $5.48 billion to the current $4.8 billion.