The Solana blockchain has risen through the ranks to become the second largest network for trading Non-Fungible Tokens (NFTs). Over the last few months, the network has seen significant growth in terms of sales volume and at one time even briefly surpassed Ethereum.
This article dives deeper into the rise of the Solana NFT market and considers whether this does indeed make Solana a viable competitor to Ethereum.
Solana NFT Market Share Growth
The Solana network has arguably become a favorite option for NFT collectors, resulting in a corresponding surge in trading volume. Notably, Solana recorded a higher trading volume than Ethereum between 24th May and the early hours of 25th May 2022. While NFT sales on the Ethereum network totaled $24 million, the figure on the Solana network came in slightly higher at $24.3 million.
This difference in sales volume, although relatively small, was noteworthy. It marked the first time that a competing layer-1 network pulled ahead of Ethereum, in terms of NFT Trading volume.
- One of the reasons behind the observable rise in sales revolves around what happened prior to the occasion. On Tuesday, 24th May 2022, a new profile picture project (PFP NFT) was launched on Magic Eden, one of the top Solana NFT marketplaces. The launch of the NFT project became very popular and led to an influx of sales that day and the next.
Over $14 million out of the total amount of $24.3 million that was recorded as sales for Solana was attributed to the launch. Even now, Magic Eden is regarded as the leading NFT marketplace on the Solana blockchain as it still generates a great deal of sales volume for the network.
Another contribution to Solana’s growth could be the network’s cheap transaction fee. Users typically pay less than $0.0005 to transact on Solana, while the figure could run into a few dollars on Ethereum. The cheap fees contribute to the increasing number of active addresses and transactions recorded on the Solana network.
For instance, while Solana has reported approximately 1.5 million NFT transactions in the past 30 days, the Ethereum network has seen around 1.05 million transactions. This growing gap is one reason why Solana has been named a top competitor to the Ethereum network.
However, Ethereum remains the largest network, in terms of NFT volume by a wide margin. Over the last 30 days, Solana’s NFT trading statistics is around 10% of the total on Ethereum where NFTs are more valuable and expensive. Ethereum (which tops the list of NFT blockchains) has generated some $556 million in sales. Solana, in second place, records over $56 million in sales volume.
The growth rate of the Solana network over the last few months is, no doubt, remarkable. Its ranking as the second largest NFT trading network is also worthy of note. Due to its advancement in sales volume and number of transactions, Solana is referred to as a top contender to the largest network for NFT trading, Ethereum. Will the growth of Solana continue at its current rate? Only time can tell.