- Solana’s ecosystem experienced a 48% drop in activity following the SEC lawsuit.
- DEX volumes and NFT interest fell, but some DEXs showed signs of recovery.
Ever since the SEC filed a lawsuit against Coinbase and Binance, the cryptocurrency market, especially altcoins, has suffered negative consequences. Over time, the impact extended beyond token prices and began to affect surrounding ecosystems.
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Ecosystem takes a hit
Solana [SOL] suffered heavily from the SEC lawsuit, as evidenced by Messari’s data. In terms of activity, the network experienced a massive 48% drop in the last 30 days.
Source: Messari
Solana’s DEX volumes also experienced a significant decline, resulting in a significant drop in total value locked (TVL). Data from Messari showed that Solana’s ratio of TVL to market cap dropped by 20% following news of the lawsuit.
However, there were signs of recovery for some DEXs as activity on the networks gradually increased. Dapp Radar’s data indicated that Sabre, a popular DEX on Solana, experienced a surge in trades and an increase in the number of active wallets.
On the other hand, Raydium, another DEX, saw no notable growth in unique active portfolios or volume over the past week.
Source: Messari
The NFT sector is affected
As far as the NFT sector is concerned, Solana’s blue-chip NFTs have seen significant gains in recent weeks. However, despite the interest in these blue-chip NFTs, overall interest in the Solana NFT ecosystem declined.
Data from solanafloor indicated a significant drop in the number of NFTs traded on the network in recent days. In addition, the floor price of these NFTs experienced a significant decline during this period.
These observations suggested that interest in Solana’s blue-chip NFTs alone will not drive long-term growth of the ecosystem.
Source: Solanafloor
Realistic or not, here is the market cap of SOL in terms of BTC
At the time of writing, SOL was trading at $16.89, according to Santiment. The price experienced a significant drop in recent weeks, accompanied by a significant drop in SOL’s trading volume.
On the development side, development activity was found to have slowed significantly in recent days, indicating that new upgrades and updates on the Solana network should not be expected any time soon.
Source: Sentiment
