Solana Is A New Rival For Ethereum’s NFT Domination

New data from Messari reveals that Solana (SOL) is emerging as a challenger to Ethereum smart contract platform (ETH) non-fungible token (NFT) market dominance.

In a recent report, Messari said that although Solana’s overall usage declined in the second quarter of this year, its NFT activity accelerated significantly.

“Following a breakout end to 2021 and beginning of 2022, Solana NFT activity accelerated 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 firm revealed that NFT activity exploded in May and June after hitting a 2022 low in March.

According to Messari, Solana’s increased NFT activity is increasing due to the success of Metaplex, an open source tool that allows users to create NFT marketplaces, launch NFT Serum collection and raise funds by its 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 noted that while Ethereum continues to maintain the majority of activity in the NFT market, Solana is performing well against 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.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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