DappRadar says altcoin Solana (SOL) could potentially overtake Ethereum (ETH) as the leading blockchain for non-fungiable tokens (NFTs). Here are the details…
Altcoin Solana may surpass ETH, according to DappRadar
In a new report, DappRadar has found that Solana is performing well in the NFT space despite the latest drop in the crypto market. Transaction volume for SOL has increased amid dips seen in other blockchains, including the leading altcoin Ethereum. Apart from Solana, DappRadar also found Avalanche (AVAX) to be a clear winner. DappRadar’s report includes the following statements:
Solana and Avalanche emerged as clear winners with a 21 percent and 15 percent increase in trading volume (despite the crypto pullback). Embedded blockchains like Ethereum, Binance Smart Chain (BSC), and Polygon (MATIC) suffered heavy losses of 41 percent, 22 percent, and 59 percent, respectively. The lowest point has been reached for Flow and Ronin, which saw a 71 percent and 84 percent decline.
Solana’s low transaction fees matter
On the other hand, according to DappRadar, Solana has surpassed other blockchains in terms of sales count. According to the report, although many tokens lost value, trading activity continued on many Blockchains. Solana emerged as a clear winner in this respect, increasing sales by 98 percent. At the same time, this rate was 2 percent in Ethereum (ETH). BSC, on the other hand, saw a 4% decrease. The same goes for other Blockchains that face losses of up to 75 percent.
The report says Solana has emerged as a threat to Ethereum due to its low gas fees and low barriers to entry. According to DappRadar, ETH has historically been the primary chain for non-fungiable tokens (NFTs). However, SOL is starting to be preferred due to Solana’s low transaction (gas) fees. Solana is growing as an important alternative for new NFTs.
Magic Eden and Okay Bears, some of the most popular among Solana-based NFTs, have seen a record influx of traders due to the launch of many successful collections. Solana marketplace operates with a 0 percent listing fee and only a 2 percent transaction fee. This quarter, Magic Eden accounted for 10 percent of all NFT transactions. Meanwhile, Solana’s SOL coin is trading close to $38, up 2.9 percent.
