NFTs have been all the rage in the press for over a year. However, it is surprising to find that a single blockchain dominates very clearly. It hosts a large part of the NFT projects: the Ethereum (ETH) network. We will discuss in this article the hegemony of Ethereum in the mint NFTs, but also the emergence of Solana (SOL) as a credible competitor.
Ethereum, the reference blockchain for issuing NFTs
Just look at the collection ranking of NFT on CoinMarketCap to realize the hegemony of the Ethereum network for the mint of NFTs. Indeed, the Top 30 NFT collections in terms of sales volume is only on this network. There are collections such as Mutant Ape Yacht Club, Bored Ape Yacht Club or CryptoPunks. Moreover, according to Messari, the leading provider of intelligence products for the cryptocurrency market, Ethereum accounts for approximately 84% of NFT’s secondary market volume. For now, a single blockchain dominates the NFT market. But this could change…
A situation that could change with the emergence of the Solana network
Since its launch, Solana (SOL) has been presented as a “ Ethereum Killer “. With significantly lower transaction fees and much faster speed, the Solana network could potentially end Ethereum’s hegemony. At the beginning of April, we discussed here the theoretical reasons for the expansion of the use of the Solana blockchain for NFTs. While it will probably be some time before another blockchain dethrones Ethereum in the NFT market, Solana presents itself as a real alternative for NFTs.
Factually, where is the Solana network?
Market attention is increasingly on the opportunity to launch NFT collections on the Solana ecosystem, which is cheaper than that of Ethereum. Solana saw approximately $700 million in secondary sales during the first quarter of 2022, with a 90-day volume growth rate of 3.8%. NFT projects, such as Degenerate Ape, have provided full-scale testing of the scalability of the Solana network. Indeed, the 10,000 monkeys were sold in just 8 minutes.In the endin April, users holding NFTs on the Solana network were given the opportunity to sell on OpenSea. OpenSea is the first NFT marketplace in the world in terms of volume. This news accelerates the number of NFT projects on this blockchain. Indeed, the integration of Solana’s NFTs on OpenSea considerably expands the range of available NFT collections. As a reminder, only the Ethereum (ETH), Polygon (MATIC) and Klaytn (KLAY) blockchains were previously compatible on the platform.
NFTs certainly have a very promising future in many areas (music, art, fashion, etc.). However, the question of the network on which NFTs are sold and traded could become unavoidable for all NFT projects. Indeed, the Solana blockchain is faster and above all less expensive than Ethereum. As for the Polygon blockchain, it is much more ecological. Thus, it will be interesting to observe in the medium term if the hegemony of Ethereum will decrease in favor of other blockchains like Solana or Polygon.
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Student passionate about entrepreneurship and fascinated by the technologies behind cryptos! Yes, I am convinced that the two are intimately linked: blockchain and NFTs are revolutionizing many sectors and presenting unprecedented opportunities.
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Solana (SOL) blockchain threatens Ethereum (ETH) for NFT mint
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