Solana Dominates Ethereum, Bitcoin In NFT, Activity: What’s Next For SOL?
January 23 2024 - 5:00PM
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According to on-chain data from SolanaFloor, Solana is dominating
other blockchains, including Ethereum and Polygon, across various
non-fungible token (NFT) activity metrics in the third week of
January. Solana Dominates Ethereum, Bitcoin In NFT Activity In a
post shared on X on January 23, Solana maintained its NFT
dominance among competing blockchains, mainly Ethereum and other
high throughput alternatives. Thus far, the blockchain has the
highest numbers in unique wallets, transactions, unique buyers, and
first-time wallets over the past week. To illustrate, Solana
had over 106,000 unique wallets by the third week of January 2024.
This is more than twice those created in Ethereum. Meanwhile, there
were over 22,000 first-time wallets on Solana, roughly 3X those in
Ethereum and 2X in Bitcoin. At the same time, more than 2.8 million
transactions were posted on Solana. This figure is over 20X those
in Ethereum during the same time frame. Related Reading:
Bitcoin Price Drops Sub $39,000 – 3 Key Reasons Extrapolating from
this data suggests that the blockchain is increasingly popular
among NFT projects, collectors, and traders. Several factors could
be contributing to Solana’s NFT success. The platform is
known for its high throughput and low transaction fees. Considering
how minters and active traders are sensitive to trading fees,
Solana is emerging as a layer-1 option for projects wishing to
enjoy the security of the mainnet while also benefiting from low
transaction fees. Legacy chains, including Ethereum, continue to
struggle with on-chain scalability. Minting on the mainnet often
translates to high fees, which can decrease profitability,
especially for active traders and collectors. Beyond scalability
advantages, Solana’s ecosystem is rapidly expanding. Despite the
catastrophic drop of SOL prices at the end of 2022, the spectacular
revival in 2023 activated on-chain activity with meme coins
blooming and NFT projects opting to launch on Solana. The ongoing
recovery of SOL and the increasing number of projects opting to
deploy on the mainnet could further drive on-chain activities,
including NFT minting and trading, to new levels in 2024.
Developers At Work, Will SOL Reclaim $125? As the network draws
users, its developers are also working to make the platform more
robust and decentralized. In 2024, Solana developers plan to
activate Firedancer, a validator client developed by Jump Capital.
This client will help further decentralize Solana’s infrastructure,
improve performance, and substantially improve reliability,
eliminating network hitches that plagued the blockchain in 2022 and
early 2023. SOL is cooling off, trading at around $80 when writing.
The coin is down 34% from December 2023 peaks and below the dynamic
20-day moving average, pointing to bears. Related Reading: Shiba
Inu Ecosystem Soars: Shibarium Hits Crucial Milestone Key support
remains at around $70. If there is demand at this price point, SOL
may recover and retest $125 in the sessions ahead. Feature image
from Canva, chart from TradingView
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