Solana-based non-fungible tokens (NFTs) have reached a major milestone, surpassing an all-time sales volume of $5 billion, according to data from CryptoSlam.
This increase in activity marks a radical shift for the Solana blockchain, which struggled to gain traction in the nft space just a few months ago.
Solana Ecosystem Boosts
As of February 23, the cumulative sales volume of Solana-based NFTs has reached $5,014,125,016, showing the growing importance of the layer 1 blockchain in the nft market. The network has a significant user base, with more than 2.2 million buyers and 1.6 million sellers, facilitating almost 43 million transactions.
The recent increase in Solana nft sales contrasts with the stagnation seen in the months leading up to November 2023. Monthly sales volumes were around $40 million, showing few signs of growth. However, this trend changed after October 2023.
In November 2023, Solana nft sales skyrocketed to approximately $82 million, a 192% increase from the previous month. This momentum continued into December, with Solana-based NFTs recording around $365 million in monthly sales, just shy of ethereum's $353.2 million.
Solana's increase in nft sales aligns with the bullish trend of the Solana token, which has seen a price increase since December 2023. The current trading price is $102.73, which is an increase of 302% compared to last year according to data by Coingecko.
Although sales volume slowed slightly in January, Solana NFTs still recorded more than $239 million in sales. In February, the monthly sales volume amounts to 161 million dollars. These consecutive months of strong performance have propelled Solana NFTs to surpass $1 billion in sales volume in the last nine months alone.
Analysts Predict ethereum's Decline
The increase in sales volume and transactional activity could be attributed to the broader excitement surrounding the Solana ecosystem and the buzz around specific projects offering potential incentives such as airdrops and additional benefits.
For example, Tensorians, an nft initiative affiliated with Solana's prominent marketplace Tensor, recorded trading volumes totaling $28 million in December. Mad Lads recorded transactions worth $24.5 million during the same period.
Analysts at JPMorgan, led by Nikolaos Panigirtzoglou, have forecast ethereum's market share declining in the nft space, with competitors like Solana gaining ground. Citing congestion issues and exorbitant gas fees plaguing ethereum, analysts noted a significant migration of nft applications to alternative blockchains, with Solana emerging as the main beneficiary.
Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off fees on Binance Futures for the first month (terms).
<!– ai CONTENT END 1 –>
