NFT Volumes Surge on Solana

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Trans­ac­tions Crossed 1M For The First Time This Month

NFT trans­ac­tions on the Solana net­work are at an all-time high, sur­pass­ing 1M in the week end­ing Sept. 12 for the first time ever and 900,000 in the week end­ing Sept. 19. 

A blockchain cre­at­ed to address Ethereum’s high trans­ac­tion costs and slow speeds, Solana has been hav­ing a moment.

In the past two weeks, its native token, SOL, has dropped less than 2% despite a wide­spread sell­off in the mar­kets. Ether has fall­en more than 20%.

ETH Price + SOL Price, Source: The Defi­ant Terminal

Oth­er mea­sures of NFT activ­i­ty have recent­ly hit or are near all-time highs.

Record Volume

NFT sales vol­ume hit an all-time high in the week end­ing Sept. 12, approach­ing 1.5M SOL, or almost $50M, accord­ing to Nansen. The num­ber of Solana users inter­act­ing with NFTs that week was the high­est since late June.

Ethereum’s high trans­ac­tion fees are a bar­ri­er to entry for the aver­age user, but they also lim­it wash trad­ing, a prac­tice in which some­one trans­fers an asset between mul­ti­ple wal­lets he or she owns in order to cre­ate the impres­sion that the asset is in-demand and fre­quent­ly trad­ed, there­by inflat­ing its val­ue. Some took to social media to sug­gest Solana’s recent NFT surge was dri­ven by such trading. 

Organic Growth

But Javier Gon­za­lez, a soft­ware engi­neer on Nansen’s NFT team, said data he’s seen sug­gests the growth is organic.

The action has been broad-based, with both large and small NFT col­lec­tions see­ing a bump. And it’s not just the lat­est ones, as old projects are also see­ing renewed interest.

“Some­times you could see it’s this one project tak­ing a lot of vol­ume, or maybe it’s peo­ple wash trad­ing that project, but that’s not the case here,” he said. The cur­rent surge “looks like it’s either is very well orches­trat­ed, which is unlike­ly, or real­ly there is more vol­ume every­where in Solana.”

The surge has been dri­ven by return­ing buy­ers rather than brand-new buy­ers, Gon­za­lez said, and was like­ly kicked off by the debut of the ABC and y00ts col­lec­tions on Aug. 22 and Sept. 6, respectively.

The ABC NFT col­lec­tion on Solana was “made to remind you of how fun things were when we were kids, before grow­ing up.” 

Ethereum remains the most pop­u­lar blockchain for NFTs. 

Although NFT trad­ing vol­ume on Ethereum has cratered since hit­ting an all-time high in May, it topped 330,000 ETH — almost half a bil­lion dol­lars at Thursday’s prices — in the past 30 days, accord­ing to Nansen. Despite its Sep­tem­ber surge, Solana record­ed a more mod­est $126M in NFT trad­ing vol­ume in the past 30 days.

Nev­er­the­less, it has estab­lished itself as a lead­ing blockchain for NFT artists and collections.

“It seems like Solana has some icon­ic col­lec­tions,” Gon­za­lez said. “Solana should be able to claim, ‘We are the sec­ond chain for NFTs.’”

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