Solana NFTs: Revival in Sight as Compressed NFTs Launch

• Solflare announced that compressed NFTs will soon be launching on Solana, which could potentially turn the tables in its favor in the coming months.
• Current metrics related to NFTs on Solana looked promising, but SOL has quite a few roadblocks ahead due to major collections like y00ts migrating to Polygon [MATIC].
• Data from Dune and Santiment suggested an uptick in NFT volume and buyers over the past few days.

Promising News for Solana’s [SOL] NFT Market

Solflare recently announced that compressed NFTs will soon be launching on Solana, which could potentially turn the tables in its favor in the coming months. Despite this promising news, SOL still has quite a few roadblocks ahead due to major collections like y00ts migrating to Polygon [MATIC].

y00ts Migration To Polygon

y00ts was the most traded Solana NFT collection during the last week and has completed over 75% of its migration to Polygon recently. This was not very pleasant news for Solana, which has already been victimized by declining NFT transaction count and volume, as suggested by Dune’s data.

Uptick In NFT Metrics

Data from Dune and Santiment suggested an uptick in NFT volume and buyers over the past few days. CRYPTOSLAM’s data highlighted that Solana’s NFT sales volume went up by more than 60% in the last 24 hours. Furthermore, Santiment’s chart showed an increase in unique addresses buying less than 1k USD of NFTs.

Compressing NFTs On Solana

In order to serve Web2 and Web3 enterprise customers who want to activate millions or even billions of users, Solana Labs developed compression for NFTs. Compressing these would drastically reduce the cost and storage requirements required for minting and storing them on their network.

Conclusion

Despite having some major setbacks due to migrations of key collections like y00ts away from it, there have been signs of revival with increased activity related to different metrics like volume and number of buyers on the network lately. The launch of compressed NFTs will provide further assistance towards scalability on their network – something which may become a game changer for them moving forward into 2023-24.