Solana (CRYPTO:SOL) has been outpacing Ethereum (CRYPTO:ETH) in decentralised application (DApp) activity, largely due to a surge in NFT trades.
According to DappRadar, Solana’s DApp volumes increased by 87% over the past 24 hours, reaching $83 million.
This growth positions Solana as the top gainer among the top five largest Layer 1 blockchains.
In contrast, Ethereum, the largest blockchain by DApp volumes, saw a 30% decline during the same period.
The rise in Solana’s activity is accompanied by a 111% increase in unique active wallets, totaling 2.49 million.
Additionally, transactions on the Solana network rose by 15% to over 11 million, reflecting increased user engagement.
NFTs have significantly contributed to this growth, with Magic Eden, the largest NFT marketplace on Solana, experiencing a 600% rise in volumes.
The Tensor NFT marketplace also saw a 95% increase in volumes and a 60% rise in user numbers.
In August, Solana NFTs recorded $79 million in sales, making it the second-largest blockchain by NFT trading volume.
Despite the surge in network activity, Solana's native token, SOL, has faced price pressure.
The Chaikin Money Flow (CMF) indicator shows weak buying pressure, although it has created a higher high, indicating potential recovery.
The Moving Average Convergence Divergence (MACD) line remains below the signal line, with red histogram bars suggesting ongoing bearish sentiment.
SOL has repeatedly tested the support level at $129, and to regain bullish control, it must hold above this level.
If buying pressure increases, SOL could break the next resistance level at $142.
However, not all metrics are positive; the Total Value Locked (TVL) on Solana has fallen by 12% over the past week, from $5.48 billion to $4.8 billion.
This decline suggests that while NFT trading is thriving, other protocols on Solana are struggling to retain value.
At the time of reporting, the Solana (SOL) price was $128.36, and the Ethereum (ETH) price was $2,376.96.