[Report] Why has Solana NFT started to attract attention?

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Why did Solana NFT start to attract attention? First, let’s look at the difference between Ethereum and Solana NFT from a technical point of view. Ethereum and Solana are among the top cryptocurrencies in the market. Solana has become recognized as a potential threat to Ethereum after becoming one of the few successful protocols in the blockchain industry.

What are the significant differences between Ethereum and Solana?

Ethereum has the largest network consisting of smart contracts. Ethereum NFT is a token issued through a smart contract that follows the ERC721/1155 standard to create an NFT collection. Therefore, issuers can give the NFT several interesting call functions by customizing the smart contract, including adding logic if desired.

On the other hand, Solana NFT, interestingly, is a general Solana Program Library (SPL) token with a fixed issuance of 1. Strictly speaking, Solana NFT collections are viewed as a bundle of 1/1 NFTs with similar metadata attached rather than a collection tied to a smart contract. Unlike Ethereum NFT, Solana does not make it possible to collect and check the transaction details of the NFT collection on Explorer. If you want to check all the NFTs in your collection, you have no choice but to get a minting list directly from the publisher.

However, there are advantages of Solara NFT. First, Solana makes it easy to begin an NFT project in Solana because there is no need to write a separate smart contract. In addition, the gas cost is low due to the nature of the chain, so the minting and NFT transfer between wallets are not burdensome. As of June 3, the average gas cost to purchase NFTs in Ethereum (OpenSea) is about $20. In Solana, it is only about $0.00050.

Solana Overview as of June 7, 2022

●  The Solana sales volume is approximately around $2.35 billion.

●  It is the second-largest NFT sales volume by blockchain protocols.

●  Because the gas fees are so low on the Solana NFT Marketplace, the market is susceptible to scammers, fakes, and rugs.

●  The Solana Network suffers from congestion issues. The Solana Network was temporarily unavailable for over four hours this week, a major setback for the company. As of June 2022, Solana has had 12 major outages.

●  The Solana NFT market is starting to attract attention from NFT DJs and artists who want to enter the NFT market due to its low transaction fees and fast speed.

●  Accordingly, the Solana NFT transaction volume has increased significantly this past year. As Ethereum activity has recently declined sharply, Solana is recording at a level similar to that of the Ethereum NFT transaction volume. However, as transaction fees are low, there is a risk for artificial market making. Therefore, flipping activities aimed at short-term profits likely account for most of the transaction volume.

●  In fact, the Solara NFT market has an excessively high turnover rate, so it is judged that it has not grown 100% fundamentally. However, if the business develops in a direction that takes advantage of the characteristics of the Solana blockchain, such as combining Solara NFT with the P2E game market rather than PFP, the future growth potential is expected to be higher.

Magic Eden is now the top Solana-based NFT MarketPlace in daily trading volume.

Source: Dune analytics

While Solana-based Magic Eden’s trading volume has been growing rapidly since this year, OpenSea has been steadily declining since it recorded ATH in January. Since May, OpenSea’s trading volume has declined further and is in danger of being reversed by Magic Eden. Currently, Magic Eden has caught up to 60 to 70% of OpenSea’s total trading volume (Magic Eden: $20M, OpenSea: $31M).

In terms of the number of transactions, Magic Eden reversed OpenSea in September 2021, and the gap is widening over time. This is because the Solana transaction fee is exceptionally low, and there is high speculative demand.

Magic Eden already reversed the number of Ethereum users in mid-May. Currently, the number of Magic Eden and OpenSea users is 44,000 and 460,000, respectively. However, based on the on-chain trend of Ethereum, there is a possibility that the influx of Magic Eden users will slow down in the future.

Source: Dune analytics

Solana NFT Markerplace

There are many different Solana based NFT Marketplaces. These are some of the major NFT markets. 

Source: Dune analytics

  1. Magic Eden
  2. Opensea
  3. Alpha Art
  4. Digital Eyes
  5. Exchange Art
  6. Metaplex
  7. Solanart
  8. Solsea

There is also the Fractal Solana NFT Marketplace as well. 

These are the main popular Solana NFT collections on Opensea Marketplace

Just Apes: Just Ape is a Solana based PFP collection of 10,000 Apes that takes us back to basics. None of the flugg, all of the value. 

Okay Bear: Okay Bear is a Solana based PFP collection of 10,000 diverse bears building a virtuous community that will transcend the internet into the real world. They are known as WAGBO (We Are Gonna Be Okay) on various social media sites. Okay Bear is one of the most successful projects in the Solana NFT collection. 

Vandal City: Vandal City is a Solana based lifestyle brand and blockchain gaming of 10,000 unique NFTs founded by a talented team of blockchain engineers, artists, and web3 enthusiasts. 

Trippin Ape Tribe: Trippin Ape Tribe is a Solana based PFP collection of 10,000 unique NFTs. In psychedelic images represent an aesthetic statement and membership in an exclusive club. Team is the creator of Okay Bears NFT project.  

Great Goats:Great Goats is an exclusive Solana based PFP collection of 11,111 unique NFTs. There are four core values in this nft project which are Narrative, Lifestyle, Value and Craft. The vision is to unite together to build a Great community. The project stands out because of their narrative and strong NFT community. Great Goats has built up to this point is derived from the lifestyle and social branding that the Great Goats team has already so carefully cultivated.

All 5 NFT Source: Magiceden

Conclusion

Solana has great advantages in price, has less gas fees, and boasts a strong community.

Recently, as the activity of Ethereum has declined sharply, the Solana transaction volume is at a record high, and it is similar to Ethereum transaction volume. Several Solana-based collections are building a strong enough community to be called blue chips in the NFT market.

There is a business that suits every blockchain. Solana Chain is in better shape in the P2E game market, where there are many Solana on-chain transactions than PFP NFT projects using Ethereum. That’s why Solana is heavily investing in the gaming market. In addition, the Solana foundation has recently set up a $100 million investment and grant fund to deploy capital into South Korean Web3 startups, especially P2E and game-related startups. It will be interesting to watch how the Solana NFT market will continue to expand and grow its protocols and compete with Ethereum.

Disclaimer: The information provided in this article is solely the author’s opinion and not investment advice. The information posted in the article is for educational purposes only. By using this, you agree that the information does not constitute any investment or financial advice.

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[Report] Why has Solana NFT started to attract attention?
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[Report] Why has Solana NFT started to attract attention?
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Why did Solana NFT start to attract attention? First, let's look at the difference between Ethereum and Solana NFT from a technical point of view. Ethereum and Solana are among the top cryptocurrencies in the market.
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