According to SolanaFloor on-chain data, Solana is dominating other blockchains, including ethereum and Polygon, in several non-fungible token (nft) activity metrics in the third week of January.
Solana dominates ethereum and bitcoin in nft activity
in a post shared At X on January 23, Solana maintained its nft dominance among competing blockchains, primarily ethereum and other high-performing alternatives. So far, the blockchain has the highest numbers in unique wallets, transactions, unique buyers, and first-time wallets over the past week.
As an example, Solana had over 106,000 unique wallets in the third week of January 2024. This is more than double the number created on ethereum. Meanwhile, there were more than 22,000 wallets for the first time on Solana, about triple those on ethereum and double those on bitcoin.
At the same time, more than 2.8 million transactions were recorded on Solana. This figure is more than 20 times higher than ethereum during the same time period.
Extrapolating this data suggests that blockchain is increasingly popular among nft projects, collectors, and traders. Several factors could contribute to Solana's nft success.
The platform is known for its high performance and low transaction fees. Considering that minters and active traders are sensitive to trading fees, Solana is emerging as a layer 1 option for projects that want to enjoy the security of mainnet while benefiting from low transaction fees.
Legacy chains, including ethereum, continue to struggle with on-chain scalability. Minting on the mainnet often results in high fees, which can decrease profitability, especially for active traders and collectors.
Beyond the scalability advantages, the Solana ecosystem is expanding rapidly. Despite the catastrophic drop in SOL prices in late 2022, the spectacular resurgence in 2023 activated on-chain activity with the flourishing of meme coins and nft projects that chose to launch on Solana.
The ongoing SOL rally and the growing number of projects opting to deploy on mainnet could further drive on-chain activities, including nft minting and trading, to new levels in 2024.
Developers at work, will SOL get $125 back?
As the network attracts 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 the network issues that plagued the blockchain in 2022 and early 2023.
SOL is cooling off, trading at around $80 at the time of writing. The coin is down 34% from December 2023 highs and below the 20-day dynamic moving average, pointing to the bears.
Key support remains around $70. If there is demand at this price, SOL may recover and retest $125 in the coming sessions.
Featured image from Canva, TradingView chart
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