NFTs and DAOS have become the digital gold mines in recent times due to the fact they are developed with blockchain technology which is a big player in the growth of 4th Generation technologies like the metaverse and Web 3.0.
Ethereum has been the cryptocurrency on which NFTs are dependent; the minting and the sales. However, other cryptocurrencies dive in with an unimaginable tempo. Solana is one of such cryptocurrencies making waves in the digital arena, especially since its strides in NFTs and DAOs.
Solana Overtakes Ethereum In NFT Transaction Volume.
A monthly community update shows that Solana is ideal because of its cheap transactions. This was revealed by investment-focused DAO, Athens DAO. Relative to Ethereum, transaction costs on Solana are low, and this has contributed to high NFT transactions on the altcoin’s network.
The latest NFT marketplace on Solana is Magic Eden. It is considered a competitor to peer-to-peer Ethereum marketplace OpenSea. Magic Eden Contributes to the high transaction volume on the altcoin’s blockchain due to its fast-growing rate.
In the past week, the transaction count on Magic Eden hit 360,734. Based on data from DappRadar, the total transaction volume on Magic Eden has surpassed $1.6 billion. Despite the recent drop in the trade volume of DeFi and NFTs, in response to the crypto bear market, the total NFT transaction count on Solana beat Ethereum. Over the past seven days, total transactions on Ethereum came up to a little under 500,000, while Solana noted almost 630,000 transactions. The activity on the Solana network was 32.6% higher than Ethereum, though the total value locked on the altcoin remains much lower.
Though there has been a sharp decline in NFT transactions both on the Ethereum and Solana networks compared to the numbers in May 2022. However, Solana surpassed the transaction count of Ethereum since the launch of Magic Eden.
At the Hacker House event organized by Grape, a decentralized social-networking protocol, developers pointed out that Solana is outstanding for DAOs. Dean Pappas, a core contributor to Grape, said, “To experiment in governance and think about all these new ideas, these wacky things, you need very cheap transactions, they need to happen fast, and you need a very good user experience.”
Solana price skyrockets and accounts for double digits overnight.
Crypto analysts at More Crypto Online believe Solana price is prepared for a show. Once the Solana price crosses $42.80, it would target the $48.41 level. Analysts have anticipated a massive breakout in Solana once the altcoin crosses the two set targets.
For Solana to thrive over the long term, it would have to continue presenting itself as a cheap, and viable alternative. Else, it might just end up being gobbled up by other competitors from within the digital space.