Solana (SOL) Appearing As New Challenger to Ethereum’s NFT Dominance

Solana (SOL) Appearing As New Challenger to Ethereum’s NFT Dominance

Recent stastics from crypto insights firm Messari shows that Solana (SOL) is coming out as a challenger to foremost smart contract platform Ethereum’s (ETH) non-fungible token (NFT) market dominance.

 Messari says that even though Solana’s overall usage fell in Q2 of this year, its NFT activity has increased remarkably.

Following a breakout end to 2021 and beginning of 2022, Solana NFT activity speed up amidst the network’s decline in usage and DeFi activity during Q2. Daily new NFTs dramatically increased to over 7 million newly minted NFTs, representing 46.4% growth. For perspective, newly minted NFTs over the first six months of 2022 are twice the amount minted during all of 2021.”

The market intelligence company discloses that NFT activity on Solana skyrocketed in May and June after it reached a 2022 low in March.

According to Messari, the increased NFT activity on the Ethereum challenger is accelerating up due to the success of Metaplex, an open-source tool that lets users create Solana-based NFT marketplaces, the launch of the Serum NFT collection, and fundraising by Solana’s own NFT marketplace, Magic Eden.

“Ultimately, Solana’s position in the NFT sector remains a strong component of its ecosystem despite a down market. It continues to be the second-largest protocol by secondary NFT sales volume, trailing only behind Ethereum.”

Messari notes that while Ethereum continues to maintain the overwhelming majority of activity on NFT market, Solana is doing well compared to other competing layer-1 protocols.

“Although Ethereum maintained 85% dominance and controlled the number one position of NFT secondary sales volume, Solana continued to capture market share compared to the alternative L1s in the peer group.”

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