Non-fungible token (NFT) transactions on the Solana network reached a record high. For the first time, during the week ending September 12, these transactions went above one million.
A record number of NFT transactions have been made on Solana.
The surge of NFT transactions on the renowned Ethereum competitor Solana was noted in a Defiant article. As a result of the network’s fast transaction times and minimal costs, the Solana blockchain gained popularity.
The Solana blockchain’s native token, SOL, has underperformed over the last two weeks as a result of the drops seen in the whole cryptocurrency market during this period. According to data from CoinGecko, SOL has decreased by almost 2%. It has outperformed both Bitcoin and Ether, nevertheless.
As a result of addressing issues experienced by Ethereum users, Solana has emerged as a center for cryptocurrency applications. According to the most recent record numbers, NFT activity on the network seems to be increasing.
According to Nansen statistics, the value of the NFT sale volumes on Solana for the week ending September 12 was close to 1.5 million SOL tokens, or almost $50 million. Additionally, Solana users traded more NFTs this week than at any time since June.
Organic Solana NFT volume
It is challenging for a new user to join the Ethereum network due to the hefty transaction costs. However, the high cost has benefits since it restricts wash trading, in which individuals move assets among the assets they hold to feign demand. Social media claims that wash trading operations are to blame for the current increase in NFT volumes on Solana.
Software engineer Javier Gonzalez of the Nansen NFT team said that the Solana trade volumes are natural and not the result of wash trading activity. Due to the inclusion of both big and small NFT collections, the trading operations were not restricted. Additionally, interest in older projects has grown.
Gonzalez also said that rather than brand-new customers, returning customers were mostly to blame for the increase in trade volumes. The publication of the ABC and y00ts NFT collections on August 22 and September 6, respectively, may also be to blame for the increase.
Ethereum has retained its position as the top blockchain for NFTs despite Solana’s patchy development. Despite falling from their all-time high, NFT trade volumes on Ethereum have hit 330,000 ETH during the last 30 days, according to Nansen’s statistics.
However, despite the spike in NFT trading on Solana in September, the network recorded NFT trade volumes totaling $126 million over the previous 30 days. This shows that NFT artists still choose Ethereum and that the quantities recorded on Ethereum at the time pale in comparison.
The Solana network, on the other hand, is quickly becoming one of the top blockchain networks for NFT producers and dealers. Gonzalez claims that the Solana blockchain includes collections of iconic tokens and that the network might quickly overtake Ethereum as the second-largest blockchain for NFT assets.