Solana: Fault, efforts impact on SOL in the short term?
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Solana (SOL) has received a lot of criticism from the crypto community for its downtime errors. However, the cryptocurrency may have relied on the NFT market as its saving grace. Recently, one of the largest NFT marketplaces, Magic Eden on Solana, released a new update.
SOL price prediction for 2022-2023
Magic Eden tweeted about the release of Boots, a customizable NFT, with the help of the Raindrops Protocol. This update may bring several improvements to the Solana ecosystem. However, at the time of writing, things are looking bleak for their NFT.
SOL and Blue Chip index
As you can see in the image below, the Solana Blue Chip Index price has been falling for the last 30 days. The Solana Blue Chip Index is a collection of the top Solana NFTs and its status represents the overall state of the SOL NFT market.
Along with the drop in the value of Solana's Blue Chip Index, so has its trading volume. Since September 6, Solana's volume has plummeted in volume and is down 75%. In addition, its minimum total value also decreased by 23 % during the same period.
Despite minimal volatility in value and volume, the number of buyers and sellers remained flat throughout the year. However, the number of traders started to decline after September 26, which could be a cause for concern for potential investors.
SOL investors are cautious
Despite Solana's efforts to garner investor interest, the overall sentiment surrounding SOL remains negative. This can also be seen in the image below. The negative sentiment also indicates that Solana has not been able to regain investor interest and confidence as of press time.
Another bearish indicator for Solana would be its declining development activity, which suggests that Solana's work on new updates and upgrades may have slowed based on GitHub activity.
Despite bearish indicators, Solana price is up 1.55% in the past 24 hours and is trading at $30.24 at press time. Along with its price, Solana's volume and market capitalization also recovered, increasing 14.74% and 1.8% respectively.
Oct 17, 2022