The popularity of NFTs on the Ethereum and Solana chains has grown over the past year. JPEG trading on the blockchain was the shiny new thing that was quickly accepted by investors all over the world. This attracted millions of users to both channels. However, over time, competition has become fierce between Ethereum and Solana, which remains the two largest NFT chains in the space.
Solana fills the gap
The rise of Solana NFTs is impressive over the past two months. It has now made its way to becoming the main competitor to Ethereum. See the article: Bitcoin (BTC) Price: Is $50,000 Target Still Appropriate for Next Week?. It also means that supporters of both networks have been locked in a small battle when it comes to NFT dominance. Solana’s increase in NFTs has allowed the network to gain market share over its larger peer.
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Solana remains behind Ethereum when it comes to the size of the NFT, but the gap has narrowed over time. It is evident from the periods when Solana’s trading volume managed to outpace the trading volume of Ethereum. The trading day May 24 was one such example. The total volume of the SOL NFT exceeded that of the ETH amidst major disruption. Most of these transactions took place at Magic Eden, Solana’s main NFT market.
This is also shown in the number of active titles on the addresses. While Ethereum was falling, Solana rose. For June, the number of Solana’s daily active addresses was 250% higher than the number recorded on the Ethereum blockchain.
Ethereum struggles with NFTs
Ethereum remains the blockchain of choice for most people when it comes to trading NFTs, but there are a number of factors that make this an increasingly difficult choice. Currently, transaction fees on Ethereum are dropping. Read also: Ethereum (ETH) Perpetual Contract Price Analysis: Today May 10. However, it remains far superior to its competitor Solana.
While the average transaction fee last month was $6.5 on Ethereum, Solana users only had to pay a few cents per transaction. This cheaper alternative has been one of the driving factors for increased adoption of SOL.
However, Ethereum continues to dominate the market, despite the decline in NFT volume. Solana has done well over the past couple of months, but while it closed the gap a bit more, it still lags behind Ethereum.
NFT trading volume on Ethereum for 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. So we would expect lower values in general by volume in the future.
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