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 accepted by investors around the world. This attracted millions of users to both channels. However, over time, 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 is nothing short of impressive over the past two months. It has now worked its way up to become 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 have been locked in a bit of a battle when it comes to NFT dominance. Solana’s increase in NFTs has allowed the network to gain market share over its larger counterpart.

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

Solana remains behind Ethereum when it comes to NFT volume, but the gap has narrowed over time. Evidenced by the periods when the trading volume on Solana managed to exceed that of Ethereum. One such instance was the May 24 trading day. The total volume of SOL NFT had surpassed that of ETH amid great turmoil. Most of these transactions took place on Magic Eden, Solana’s main NFT marketplace.

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

Ethereum struggles with NFTs

Ethereum remains most people’s preferred blockchain when it comes to trading NFTs, but a number of factors make this choice increasingly difficult. Currently, transaction fees on Ethereum are falling. Read also: Ethereum (ETH) Perpetual Contract Price Analysis: Today May 10. However, they remain much higher than those of its competitor Solana.

While last month the average transaction fee was $6.5 on Ethereum, 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.

Nevertheless, Ethereum continues to dominate the market, even though the volume of NFT has decreased. Solana has had a good run over the past couple of months, but while it has closed the gap a bit more, it still lags way behind Ethereum.

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

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Thomas Estimbre
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