“Many VC conversations started with, ‘We like you guys, but when are you leaving Solana?’” Moisejevs said.
But now, he said crypto fans are now gravitating toward Tensor, which he says provides an NFT experience more similar to professional trading where users can profit off of quick price changes. He said competitors like Magic Eden and OpenSea view NFTs more as collectibles.
“I actually don’t think either of those is wrong,” he said. “I just think they’re different.”
For FRNT Financial’s Savic, there is still a lot of uncertainty surrounding NFTs, making it hard to tell how long their latest resurgence will last. “There are a lot of exaggerated expectations about what NFTs are going to do,” he said.
Major Upgrade
But others insist that there are other reasons besides memecoin and NFT hype spurring Solana’s comeback. Solana Labs Chief Executive Officer Anatoly Yakovenko said in an interview that developers are continuing to build on Solana and that the release of new products and platforms has helped boost interest in the blockchain.
Noelle Acheson, author of the newsletter “Crypto is Macro Now,” said Solana has undergone technical improvements after suffering multiple network outages and performance issues. The blockchain has not suffered any network incidents since February, according to the Solana Status tracking page.
“The developers kept on working and they fixed the outage problems that they were plagued with in the early years,” Acheson said.
Solana Stages Recovery
Savic also pointed to a non-crypto factor that could be causing traders to flock back to digital assets like SOL: the Federal Reserve’s pivot toward interest-rate cuts last week. He said any type of sentiment change toward risk assets will impact crypto.
“That’s something that spills over into crypto, which is definitely kind of seen as the riskiest asset class out there,” he said.
This article was provided by Bloomberg News.