In the Non-Fungible Token (NFT) space, Ethereum (ETH) is the undisputed leader. However, one of the leading altcoin’s competitors has made significant progress in this area. According to crypto analytics firm Messari, Solana (SOL) is emerging as the new contender to the NFT dominance of leading altcoin Ethereum.
Solana challenges Ethereum, the leading altcoin in the NFT space
As you follow on Kriptokoin.com, Ethereum Blockchain is way ahead of its competitors in the Non-Fungible Token (NFT) field. However, new data from crypto analytics firm Messari now points to a strong competitor. According to Messari, Solana (SOL) is challenging the NFT market dominance of leading smart contract platform Ethereum. In a recent report, Messari shows that overall use of Solana fell in the second quarter of this year. On the other hand, he says, despite this, NFT activity is greatly accelerated. Messari includes the following points in the report.
After a breakout in early 2022 and 2021, Solana NFT activity accelerated amid the network’s decline in usage and DeFi activity in the second quarter. New NFTs per day increased dramatically, reaching over 7 million newly minted NFTs. This represents a 46.4% growth. For perspective, newly minted NFTs in the first six months of 2022 are double the amount printed in the whole of 2021.
The market intelligence firm says NFT activity in Solana hit a 2022 low in March. However, he later explains that NFT activity exploded in May and June.
Source: MessariEthereum is the undisputed leader, but Solana is also going strong
According to Messari, increased NFT activity on the Ethereum challenger is accelerating due to the success of Metaplex. Metaplex is an open source tool that allows users to create Solana-based NFT markets, launch the Serum NFT collection, and fundraise by Solana’s own NFT marketplace. Messari makes the following statement:
Ultimately, Solana’s position in the NFT sector remains a strong component of its ecosystem, despite the falling market. Secondary NFT remains the second largest protocol by sales volume. It just lags behind Ethereum.
Meanwhile, Messari notes that Ethereum continues to maintain the overwhelming majority of activity in the NFT market. However, he notes that Solana holds up well compared to other competing layer-1 protocols. In this context, he makes the following assessment:
Ethereum maintains its market dominance with 85%. This floating NFT controls the number one position of secondary sales volume. However, Solana continues to increase its market share compared to alternative tier-1s in its peer group.
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