NFTs Enter A New Era As Solana Closes The Gap With Ethereum

BitcoinistPublished on 2022-07-08Last updated on 2022-07-08

Abstract

NFTs on both the Ethereum and Solana chains have been gaining popularity over the past year. The trading of jpegs...

NFTs on both the Ethereum and Solana chains have been gaining popularity over the past year. The trading of jpegs on the blockchain was the new shiny thing that had quickly gained acceptance from investors all over the place. This brought millions of users into both chains. However, as time has gone on, competition has grown fierce between Ethereum and Solana, which remain the two largest NFT blockchains in the space.
Solana Closing The Gap
The rise of Solana NFTs is nothing short of impressive over the last couple of months. It has now wormed its way up to become the top contender for Ethereum. What this also means was that supporters of both networks have been locked in a battle of sorts when it comes to NFT dominance. The rise in Solana NFTs has seen the network clinch more market share from its larger counterpart.
Solana remains behind Ethereum when it comes to NFT volume but the gap has become smaller over time. This is evidenced by the periods of times when the trading volume on Solana has managed to outpace that of Ethereum. One of these instances was the May 24 trading day. The total SOL NFT volume had surpassed that of ETH amid much fanfare. Most of these happening on Magic Eden, Solana’s leading NFT marketplace.

Solana vs Ethereum on NFTs


SOL closing in on ETH | Source: Arcane Research
It is also evident in the number of addresses that are active on the addresses. While that of Ethereum had been declining, Solana has been surging ahead. For the month of June, Solana’s daily active addresses had been 250% more than that recorded on the Ethereum blockchain.
Ethereum Having A Hard Time With NFTs
Ethereum still remains the preferred blockchain for most when it comes to trading NFTs but there are a number of factors that is making this a harder choice by the day. Currently, the transaction fees on Ethereum are down. However, it remains much higher compared to those of competitor Solana.
While the average transaction fee last month came out to $6.5 on Ethereum, Solana users were only having to pay a few cents per transaction. This cheaper alternative has been one of the drivers of the increased SOL adoption.

Nevertheless, Ethereum continues to dominate the market even as NFT volume has declined. Solana has had a good run these couple of months, but although it has closed the gap a bit more, it still remains behind Ethereum by a large margin.
NFT trading volume on Ethereum for the month of June had been 350% higher than Solana and this is expected to continue for the foreseeable future. However, the NFT space has followed the bear market trend. So lower values overall are expected in terms of volume going forward.

Trending Cryptos

ctr
CitreaCTR
wstusdt
wrapped stUSDTWSTUSDT
apr
aPrioriAPR
ctx
Cryptex FinanceCTX
audio
AudiusAUDIO
comp
CompoundCOMP
mantra
MantraMANTRA
xvs
VenusXVS
waxl
AxelarWAXL
bill
Billions NetworkBILL
pyth
PYTH (Pyth)PYTH
rune
THORChainRUNE
velodrome
Velodrome FinanceVELODROME
brev
BrevisBREV
zrx
ZRX（0X）ZRX

Related Reads

Congress Advances CBDC Ban Until 2030 Through Major Housing Reform Bill

Congress has passed the 21st Century Road to Housing Act, a bipartisan bill primarily focused on housing reform to improve affordability and supply. Included within it is a significant provision that bans the Federal Reserve from issuing a central bank digital currency (CBDC) or "digital dollar" before December 31, 2030. The measure defines a CBDC as a dollar-denominated digital asset, a direct liability of the Fed, accessible to all Americans. Proponents argue the ban allows more time to study a digital dollar's impacts and addresses concerns about privacy, financial surveillance, and government overreach in digital payments. The provision specifically targets a retail CBDC but does not restrict permissionless blockchain networks. This crypto-related language, embedded in broader housing legislation, has drawn considerable attention for its potential to shape the future of digital assets and payments in the U.S. The bill's final passage will determine if the ban takes effect for the next decade.

TheNewsCrypto21m ago

Congress Advances CBDC Ban Until 2030 Through Major Housing Reform Bill

TheNewsCrypto21m ago

Research Report Analysis: MRVL's Optical AI Booming, Why High Valuation Keeps Morgan Stanley's Star Analyst Sidelined?

Report Recap: MRVL Optical AI Boom - Why High Valuation Led Morgan Stanley's Star Analyst to Stay Neutral? Morgan Stanley analyst Joseph Moore maintained an "Equal-weight" (Neutral) rating on Marvell Technology (MRVL) on May 28, raising the price target from $172 to $195, below the trading price. This stance comes despite Marvell reporting a record quarter and significantly raising its full-year outlook (FY27 revenue ~$11.5B, up ~40%). Moore's neutral view is based on valuation. The $195 target implies ~40x CY2027 P/E. He contrasts MRVL with NVDA: both trade near ~$200, but Nvidia's forward EPS is more than double Marvell's. For MRVL's valuation to hold, it needs consistent earnings upgrades, proof of networking market share gains, or certainty on large-scale custom AI chip shipments—none of which are confirmed yet. Growth is driven by two pillars: **1) Optical Interconnect** (the faster runner): Moore raised FY27 growth expectations to >70%, with the optical module product line nearing a $1B annualized run rate. **2) Custom AI Chips** (the climber): Confidence in FY28 is growing, but a major new customer project only ramps in FY28, with no current revenue visibility. Key risks are the underperforming Storage, Enterprise, and legacy Networking segments. Moore acknowledges the real AI opportunity but believes the current price already reflects it. For the stock to work from here, investors need to see the optical business hit its targets, custom chips ramp as planned, and a recovery in the weaker business units.

marsbit53m ago

Research Report Analysis: MRVL's Optical AI Booming, Why High Valuation Keeps Morgan Stanley's Star Analyst Sidelined?

marsbit53m ago

qinbaFrank: Review and Outlook of the AI Computing Power Wave — From the Three Debates on NVIDIA to Optical Interconnect and SpaceX IPO, How is Capital Rotating?

**Summary: Retrospective and Outlook on the AI Computing Wave - A Framework for Capital Rotation** Based on a presentation by investor qinbaFrank, this analysis reviews the AI computing market trajectory since 2023 and outlines a forward-looking framework. **Key Phases and Market Debates:** The AI bull market progressed through three major debates: 1) The necessity of massive capital expenditure (late 2023). 2) The sustainability of tech giants' spending (early 2024-early 2025). 3) Potential overestimation of compute needs (early 2025). Consensus solidified in late 2025 as model capabilities and utility demonstrably improved. **Core Thesis: Penetration Rate Drives Commercialization.** Unlike the 2000 dot-com bubble, the current AI wave benefits from mature digital infrastructure, enabling faster adoption. The critical threshold is 10% penetration; surpassing it (with recent enterprise intent surveys showing ~18%) indicates entry into a rapid growth "golden period" where user scale and willingness to pay increase simultaneously. **AI vs. Internet: A Fundamental Difference.** While the internet enhanced connection efficiency, AI directly substitutes human cognition and labor. Once AI performance exceeds the "societal average" human level, its commercial value scales exponentially as payment shifts from human labor costs to AI service fees. **Investment Logic Evolution in the Compute Chain.** The focus has expanded from GPUs to a systemic re-rating of the entire hardware stack: storage/HBM, CPUs, interconnects, power, and advanced packaging. The framework is: **short-term "scarcity pricing," mid-term "upgrade pricing" (e.g., optical interconnects, power networks), and long-term "Physical AI" pricing** (edge computing, robotics). **Market Focus Shift and Adjustment Framework.** The market is transitioning from "hardware scarcity" to "commercialization validation." The ultimate anchor for the narrative is sustained high growth in model providers' Annual Recurring Revenue (ARR) and cloud business revenue, which justifies continued capital expenditure. Adjustments are categorized into three levels: * **L1 (Minor):** Driven by valuation compression or macro noise (e.g., single CPI print). Fundamentals intact. * **L2 (Moderate):** Triggered by significant macro events requiring risk repricing. Requires new data for confidence restoration. * **L3 (Major):** Involves a reset of the core industrial narrative or macro regime (e.g., AI commercialization growth stalling). The **crucial dividing line** is whether AI commercialization growth slows. Without a slowdown, pullbacks are likely L1/L2 "repricing" events. A genuine growth deceleration would signal an L2/L3 narrative reset. **Conclusion: A Foundational Civilizational Leap.** AI represents a foundational upgrade to "intelligence" itself—akin to humanity mastering fire—rather than a single-point industrial revolution. This底层能力跃迁 (underlying capability leap) will spawn successive waves of innovation (Agent, robotics, industry workflow重构). The journey will be波浪式的 (wavelike), driven by cycles of scarcity, technological upgrades, and远期兑现 (long-term realization).

marsbit1h ago

qinbaFrank: Review and Outlook of the AI Computing Power Wave — From the Three Debates on NVIDIA to Optical Interconnect and SpaceX IPO, How is Capital Rotating?

marsbit1h ago

A Country That Mined Bitcoin for 8 Years Has Built Its Own Dedicated Crypto Bank

A country that has been mining Bitcoin for eight years has established its own dedicated crypto bank. DK Bank, located in Bhutan's newly developed GMC special administrative zone, aims to fill the significant banking service gap for the cryptocurrency industry. Its CEO, Zheng YD, explained that most banks avoid crypto businesses due to a lack of risk management frameworks for decentralized and anonymous protocols. Operating under a unique "one country, two systems" governance model separate from mainland Bhutan, GMC aspires to become a financial hub for South Asia. DK Bank differentiates itself by offering integrated multi-currency accounts where users can manage both fiat currencies and stablecoins like USDT and USDC in one place, alongside services like Bitcoin-backed loans. The bank faces technical challenges in merging traditional banking systems with 24/7 crypto markets and implements rigorous on-chain and off-chain transaction monitoring for risk control. GMC's regulatory framework draws from Singaporean common law and Abu Dhabi's ADGM rules, offering a fast-track licensing process for already licensed firms while maintaining high standards. The initiative is part of Bhutan's longer-term crypto strategy, which includes Bitcoin mining since 2018. The focus, however, is on building a diversified institutional-grade crypto ecosystem—including custody and asset management—rather than retail speculative tokens. Proponents argue such sovereign crypto infrastructure is necessary, and Bhutan's early, measured approach exemplifies the thoughtful integration needed in global finance.

Foresight News1h ago

A Country That Mined Bitcoin for 8 Years Has Built Its Own Dedicated Crypto Bank

Foresight News1h ago

Kraken Launches CFTC-Regulated Perpetual Futures For US Pro Traders

Kraken has launched U.S. CFTC-regulated perpetual futures contracts for eligible institutional and professional clients, making a core crypto derivatives product available on a compliant domestic platform. The contracts, for assets including BTC, ETH, and SOL, are offered via Kraken Pro with clearing through a registered Futures Commission Merchant. This move brings the popular perpetual futures format, which allows leveraged trading without an expiry date, into the stricter U.S. regulatory framework. It provides professional traders a potential alternative to offshore platforms, balancing regulatory comfort with access to key products. However, the launch is explicitly not for retail investors. Its success depends on whether Kraken can build sufficient liquidity to compete with dominant offshore venues on metrics like spreads and execution quality. While symbolically significant for U.S. market maturity, its practical impact hinges on attracting meaningful trading activity onshore.

bitcoinist1h ago

Kraken Launches CFTC-Regulated Perpetual Futures For US Pro Traders

bitcoinist1h ago

Trading

Spot
Futures

Hot Articles

Discussions

Welcome to the HTX Community. Here, you can stay informed about the latest platform developments and gain access to professional market insights. Users' opinions on the price of ETH (ETH) are presented below.

活动图片

Top Questions