When it comes to NFT trading, most players naturally think about Ethereum and its most popular NFT Marketplace OpenSea. However, when we look at recent NFT market transactions, there is an uptrend happening on the Solana blockchain.
Solana is commonly seen as an L1 Ethereum alternative and has its own ecosystem of decentralized apps built on it. In the NFT space, Ethereum’s OpenSea vastly dominates. Magic Eden, Solana’s leading NFT marketplace, seems to be catching up. While OpenSea still leads in sales volume, Magic Eden saw its daily transactions surpass OpenSea’s in May. The floor price of several Solana-based NFTs have also continuously risen over the past few months.
How Solana NFT became second to Ethereum
Wealth generation: StepN and Okay Bears
While we’re currently in a bear market for NFT and crypto in general, there is still a money effect on the Solana NFT market — in terms of attracting both investments and traders. Other than StepN’s running shoe NFTs, an NFT project called Okay Bears had an outstanding performance.
Okay Bears on Magic Eden
The price of Okay Bears was only 1.5 SOL at the end of April. Since then, its floor price has skyrocketed and even exceeded 260 SOL at one point. This huge money effect produced by Okay Bears in a short period of time attracted many NFT players, including speculators.
After Okay Bears, Solana NFTs started to gain prominence.
Ethereum’s lackluster NFT experience
Ethereum’s weaknesses were also increasingly exposed with the continuous development of NFT. High gas fees and network congestion remain key issues, affecting the NFT experience. Meanwhile, Solana has lower gas fees, faster transaction speeds and is more environmentally friendly.
At the same time, the Matthew Effect — which can be summarized by the adage "the rich get richer and the poor get poorer" — has become more and more obvious in the Ethereum NFT market. It is harder for new collections to reach the same prominence and fame as top collections like BAYC. On the other hand, the Solana NFT market is still young and growing, affording NFT creators more opportunities to shine.
In April, OpenSea integrated Solana but Magic Eden still accounts for more than 95% of total Solana NFT market trading volume.
NFT is competitive
Solana is not the only one working hard to build an NFT ecosystem. Lesser-known blockchains like Ronin and WAX focus on GameFi NFT. NEAR Protocol is also creating an Ethereum-equivalent NFT ecosystem for users to transfer their NFT assets from Ethereum to NEAR, via EVM layer Aurora. The NFT market is still at an early stage and almost every blockchain wants to share a piece of the pie. Aside from crypto projects, more and more non-crypto brands and industries are trying to launch NFTs. This could be a real lucrative revenue stream.
Early adopters in a new technology often become the biggest players in the space. We saw this with bitcoin and ether in crypto, and we are seeing this happen with Ethereum’s OpenSea and Solana’s Magic Eden. There are claims that the NFT market is overhyped and overpriced, but if NFT survives and thrives in the next bull market, Ethereum and Solana may become the two biggest contenders.
The views expressed in this article are the author's alone and do not necessarily represent the views of ApolloX.
Risk Reminder: Crypto and NFT trading carries a risk. All trading activities are done at your discretion and at your own risk. The information here should not be regarded as financial or investment advice from ApolloX. ApolloX will not be liable for any loss that might arise from your use of any financial product.
The ApolloX app is available on Apple Store or Google Play here.
Stay up to date with ApolloX!
Telegram | Twitter | Facebook | Instagram | Discord | ApolloX News Station