Solana: Assessing the state of NFT prices and trading volume

ambcrypto.com:

Despite the re-emergence of interest in profile picture NFTs  (PFPs) since the beginning of the year, Solana [SOL] has witnessed a steady decline in NFT activity. 

According to data from Dune Analytics , the network has seen a steep decline in its count of monthly NFT trades completed since September 2022. With 349,937 NFT trades completed on Solana this month, there has been a 63% drop from the 944,010 total NFT trades completed in January. 

Source: Dune Analytics

As a result of a consistent fall in NFT trade count on Solana since the year started, the network has also experienced a drop in sales volume. With a sales volume of $35.35 million recorded so far this month, Solana has witnessed a 64% decrease from the $99.37 million registered as total NFT sales volume in January. In the last month alone, this fell by 22%. 

Source: Dune Analytics

Due to a decline in NFT activity on Solana, the NFT marketplaces native to the chain have faced a persistent fall in sales volume, buyer and seller count, and revenue. 

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Formfunction, a Solana-based NFT marketplace, recently announced its decision to stop operating after only 13 months of operation due to a decline in Solana NFT prices and trading volumes. 

This was an extremely difficult decision; however, after much discussion and careful consideration, we’ve come to the conclusion that we cannot continue to operate Formfunction.

— Formfunction (@formfunction) March 15, 2023

Also, leading NFT marketplace Magic Eden has seen a drop in NFT activity and a decline in its market share. For example,