NFTs Enter a New Era as Solana Bridges the Gap with Ethereum

NFTs on the Ethereum and Solana chains have grown in popularity over the past year. Trading jpegs on the blockchain was the shiny new thing that was quickly adopted by investors around the world. This attracted millions of users to both channels. Over time, however, competition has become fierce between Ethereum and Solana, which remain the two largest NFT blockchains in the space.

Solana bridges the gap

The rise of Solana NFTs has been nothing short of impressive in the past two months. It has now worked its way up to Ethereum’s main competitor. See the article: Bitcoin (BTC) Price: Is the $50,000 Price Target Still Relevant for Next Week?† It also means that supporters of both networks are in a bit of a battle when it comes to NFT dominance. Solana’s increase in NFTs has helped the network gain market share over its larger counterpart.

Related Reading – The meme coins dominating the top Ethereum Whale companies.

Solana lags behind Ethereum when it comes to NFT volume, but the gap has narrowed over time. This is evidenced by the periods when the trading volume on Solana managed to surpass that of Ethereum. An example of this was the trading day of May 24. Total volume of SOL NFT had surpassed that of ETH amid major turmoil. Most of these trades took place on Magic Eden, Solana’s main NFT marketplace.

This is also reflected in the number of active addresses at the addresses. While Ethereum’s was down, Solana’s was up. For the month of June, Solana’s daily active address count was 250% higher than that on the Ethereum blockchain.

Ethereum struggles with NFTs

Ethereum remains the blockchain of choice for most people when it comes to trading NFTs, but a number of factors make this choice increasingly difficult. Currently, transaction costs on Ethereum are falling. Also read: Ethereum (ETH) Perpetual Contract Price Analysis: Today May 10† However, they remain much higher than competitor Solana.

While last month the average transaction fee on Ethereum was $6.5, Solana users only had to pay a few cents per transaction. This cheaper alternative has been one of the drivers for the increased adoption of SOL.

Despite this, Ethereum continues to dominate the market even though the volume of NFT has declined. Solana has had a good run in recent months, but while it has closed the gap a little more, it is still way behind Ethereum.

NFT trading volume on Ethereum for the month of June was 350% higher than Solana and is expected to remain so for the foreseeable future. However, the NFT space followed the bearish market trend. We therefore expect globally lower values ​​in terms of volume in the future.

💎 Open an account for free to invest in crypto!

Mint House allows you to easily invest in crypto assets. Creating an account is free and only takes a few simple steps.

📈 Trade cryptos online in just a few clicks!

BitPanda allows you to trade crypto online with ease. Creating an account is fast, free and very easy.

Be vigilant and consult your financial advisor before making any investment decision. Mirror-Mag cannot be held responsible in case of bad investments. Before using any third-party service, do your own research.

Thomas Estimbre
Latest articles by Thomas Estimbre (see all)

Leave a Comment