NFT Transactions on Solana Pass 1 Million as Ethereum Killer Booms

Source: Business 2 Community

The Solana network has recorded an all-time high in non-fungible token (NFT) transactions. These transactions surpassed 1 million for the first time during the week ending September 12.

NFT transactions on Solana reach an all-time high

A report by Defiant has highlighted the boom in NFT transactions on the famed Ethereum killer Solana. The Solana blockchain rose in popularity following the network offering high transaction speeds and low fees.

The native token of the Solana blockchain, SOL, has not performed well over the past two weeks following the dips witnessed across the crypto space during this time. Data from CoinGecko shows that SOL is down by around 2%. However, it has performed better than Bitcoin and Ether.

Solana has become a hub for crypto apps because of solving the problems faced by Ethereum users. NFT activities on the network seem to be rising according to the recent record volumes.

During the week ending September 12, NFT sale volumes on Solana neared 1.5 million SOL tokens, worth around $50 million per data by Nansen. Moreover, the number of Solana users trading NFTs during the week was the highest since June.

Solana NFT volumes are organic

The high transaction fees on the Ethereum network make it difficult for a new user to enter the network. However, the high fee has advantages because it limits wash trading, where people transfer assets between the assets they own to create fake demand. Social media reports that the recent influx of NFT volumes on Solana is because of wash trading activities.

Javier Gonzalez, a software engineer on the Nansen NFT team, said that the Solana trading volumes are organic and not caused by wash trading activities. The trading actions were not narrow because they involved large and small NFT collections. Old projects also recorded increased interest.

Moreover, according to Gonzalez, the rise in trading volumes was largely attributed to returning buyers instead of the brand new ones. The spike could also be because of the launch of the ABC and y00ts NFT collections released on August 22 and September 6, respectively.

Despite this sporadic growth of Solana, Ethereum has maintained its rank as the leading blockchain for NFTs. While NFT trading volumes on Ethereum have plunged from their all-time high, they have reached 330,000 ETH over the past 30 days, per the data shared by Nansen.

On the other hand, despite the surge in NFT trading on Solana in September, the network reported $126 million worth of NFT trading volumes over the past 30 days. This pales the volumes recorded on Ethereum during that time, showing that NFT artists still prefer Ethereum.

However, the Solana network is establishing itself as one of the leading blockchain networks for NFT creators and traders. According to Gonzalez, the Solana blockchain has iconic collections, adding that the network could easily become the second-largest blockchain for NFT assets.