Categories: Crypto NewsNews

Solana performs better than Ethereum with a 136% increase in NFT volume

Published by
Nonhlanhla P Dube

According to a recent retweet by Santiment, the volume of Solana-based NFTs appears to have surpassed that of Ethereum. In actuality, the volume varies by a small but crucial factor.

The volume depicted in the tweet is estimated in the blockchain’s native token rather than USD. Despite the fact that Ethereum only observed 550k ETH worth of NFT transactions, the overall volume surpasses R9 billion. However, 1.3 million SOL in NFT transactions amounts to only R713 million.

Simply put, Solana’s NFT did not surpass Ethereum but performed better. The total number of transactions on Ethereum over the week was a little under 500k, while Solana reported nearly 630k transactions this week alone.

This 32.6 % increase in Solana activity demonstrates that cheaper pricing can encourage increased usage, although it isn’t significant. In terms of daily volume, Solana’s NFT marketplace has been gradually declining over time.

The biggest volume recorded in the last two months on MagicEden, the NFT marketplace that accounts for 98.5 % of all Solana NFT volume, was 380k SOL (R207 million) in May.
Notably, daily NFT purchases on Solana have plummeted by 78.85 % over the same time period. But Solana is not alone in this quandary; OpenSea on Ethereum is also in the same boat. The daily number of NFT transactions on Ethereum plummeted from R7.8 billion in May to R246 million on July 3. Indeed, the reduction in transaction volume from April to May was quite large, with data falling from R42.5 billion to R11 billion.

Furthermore, as of press time this month, OpenSea had already recorded R706 million in volume. At this rate, the marketplace will only have R5.6 billion in transactions by the end of this month.

Furthermore, as the overall market falls, investors may stay away from NFTs even more, thus the figure may wind up being correct.

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Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Published by
Nonhlanhla P Dube
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