- Solana network activity has increased consistently with the rise of NFT popularity.
- NFT minting and heavy bot activity on the Solana blockchain resulted in an outage on the Ethereum-killer’s blockchain.
- Cryptocurrencies like Ethereum and Solana have crumbled under rising NFT activity and selling pressure.
Altcoins in the crypto ecosystem are being hit by a bloodbath amidst fears of Fed interest rate hikes. However, activity in NFTs has increased on blockchains like Ethereum and Solana. Massive activity on the blockchain has negatively impacted Solana and Ethereum price.
NFTs put Solana and Ethereum price under stress
The Solana blockchain recently recovered from a seven-hour outage resulting from the significant rush of bots minting NFTs on the SOL blockchain. NFT minting programs on blockchains like Ethereum and Solana have increased the transaction activity, resulting in congestion.
The mainnet fell out of consensus on the Solana network and crashed, and validator nodes collapsed under the volume of transactions involved in NFT minting for Candy Machine. On the Ethereum network, rising activity and congestion result in higher gas fees which made the blockchain network less lucrative for investors and traders.
Proponents argue that nobody would use the SOL network if Solana doesn’t have consistent uptime. The unique proposition of SOL is its consistent uptime, high transaction speed and low cost.
Analysts have criticized the lack of activity on the Solana network when NFT minting stops. This is considered a sign of bearish sentiment among users and the lack of utility of SOL.
One thing that's very telling about the people that invest in @solana( $SOL), is the lack of price movement after the network stops minting blocks.
— big pey (@bigpeyYT) May 2, 2022
Blockchain is a critical infrastructure for value management in our society. It can't go down.#Cardano is built to last.
Analysts believe Solana price could crumble under the rising selling pressure on SOL. @CryptoCapo_, a pseudonymous analyst and trader, believes Solana price could plummet further before the Ethereum-killer begins its trend reversal.
$SOL pic.twitter.com/FuLK3Usd0a
— il Capo Of Crypto (@CryptoCapo_) May 2, 2022
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks

Bitcoin volatility hits multi-month lows, raising concerns of liquidation cascades
Bitcoin price has been consolidating between $94,000 and $100,000 for two weeks. Defund exchange FTX repayments on Tuesday dipped Bitcoin towards its lower boundary of the consolidating range.

Litecoin bulls target $170 mark as open interest reaches four-year high of $887 million
Litecoin price extends its gains and recovers above the $135.00 level on Wednesday, rallying over 7% so far this week. LTC’s open interest hints at a continuation of the rally as it reaches the highest level since May 12, 2021, of $887 million.

Maker Price Forecast: MKR generates highest daily revenue of $10 million
Maker price extends its gains by 6%, trading around $1,189 on Wednesday after rallying more than 20% so far this week. On-chain data support a bullish move ahead as MKR generated a new yearly high in daily revenue, and funding rate data is positive.

Ripple's XRP holds symmetrical triangle support as SEC acknowledges Bitwise XRP ETF filings
Ripple's XRP is down 3% on Tuesday despite the Securities and Exchange Commission (SEC) acknowledgment of Bitwise XRP ETF. Unchained Crypto noted that XRP ETF could underperform due to key fundamental issues.

Bitcoin: BTC consolidates before a big move
Bitcoin price has been consolidating between $94,000 and $100,000 for the last ten days. US Bitcoin spot ETF data recorded a total net outflow of $650.80 million until Thursday.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.