By Alicia Maher
Investors are concerned about the drop in Solana DApp utilization and deposits. On the other hand, blockchain deposits with comparable smart contract capabilities continue to expand.
Utilization Drops 18%
DAppRadar reveals that Solana DApp use has decreased by 18 percent since January 28th. There was just one Solana-based DApp that showed an increase in activity, and that was Solend, a lending protocol.
Furthermore, open interest in Solana futures has decreased dramatically from its peak of $2 billion in Q4 2021. Television viewership (TVL) has decreased significantly as a result of this lack of enthusiasm. Deposits to Solana DApps have plummeted by 45 percent in the previous three months, according to statistics from DeFiLlama.
According to what we know so far, DApp TVL hasn’t been this low since September of last year. A “slippery slope” is forming in the community, despite the fact that it stands at $6.68 billion. While the usage of Solana DApp has decreased, the use of comparable blockchains has surged significantly. In the previous three months, the TVL in DApps on Fantom has more than quadrupled, hitting $9 billion, while Terra’s TVL has climbed by 85 percent to $23 billion.
The TVL was hovering around $15 billion in November of last year when the first symptoms of a decline emerged. Additionally, most cryptocurrencies achieved new all-time highs around this time, which ushered in the market decline that has lasted for more than three months since then as well.
Because of this, Solana’s condition isn’t bleak: There is a lot of interest in NFTs. In the last 30 days, Magic Eden’s NFT market has grown by over 200 percent, making it the largest Solana DApp by the number of users. Utilizing his Solana-based software HEIR, Michael Jordan just published an NFT collection on Magic Eden.
Price Movements of Solana And Terra
The current conflict in Eastern Europe has wreaked havoc on the cryptocurrency industry. Since their introduction, the value of crypto assets has fluctuated dramatically, resulting in billions of dollars in losses.
As recently as four days ago, the price of Solana was trading at an all-time high of $101. Currently trading at $84.57, Terra’s LUNA, with a $27 billion market cap, is two spots below Terra’s LUNA, which has a market size of $27 billion.
This week, Terra’s LUNA was the most popular in the top ten. The asset’s value has risen by 78% to around $96 as a result of a flood of excellent news. The LUNA token is now trading at $87, up 9% in the past 24 hours.