04 Jul 2022
The winds are changing in the NFT space
The broader NFT market has seen decreasing trading volume over the last couple of months. Meanwhile, the gap between Solana and Ethereum NFTs continues to shrink.
Despite the distance between the networks, the smaller Solana market surpassed the NFT volume on Ethereum on May 24. Meanwhile, the number of daily active addresses on Solana was ~2.5x greater than Ethereum throughout June.The pace of the Ethereum blockchain network has decreased while transaction costs have increased, making way for Solana-based NFT marketplaces to pick up steam. The average transaction fee on Ethereum was $6.5 in June, in contrast to the few cents users currently pay for block space on Solana. Meanwhile, Solana has captured a significant market share for gaming NFTs.But while Solana is showing solid signs of growth, the Ethereum market remains much more valuable overall. Over the last 30 days, the NFT market on Ethereum was 3.5x the size of the Solana market in terms of dollar amount generated via sales.However, the overall momentum in the NFT space has stalled amidst a broader market crash. Compared to the all-time high of $476 million on May 1, OpenSea registered just $17 million in Ethereum trading volume on Monday.