Solana-based non-fungible tokens (NFTs) have reached a major milestone, surpassing a historic sales volume of $5 billion, according to data from CryptoSlam.
This surge in activity marks a turnaround for the Solana blockchain, which was struggling to gain traction in the NFT space just a few months ago.
Solana Ecosystem Surges
As of February 23, the cumulative sales volume of Solana-based NFTs has reached $5,014,125,016, demonstrating the growing importance of layer 1 blockchain in the NFT market. The network has a large user base, with over 2.2 million buyers and 1.6 million sellers, facilitating nearly 43 million transactions.
The recent increase in Solana NFT sales contrasts with the stagnant performance seen in the months leading up to November 2023. Monthly sales volumes hovered around $40 million, showing little sign of growth. However, this trend reversed after October 2023.
In November 2023, Solana NFT sales soared to approximately $82 million, an increase of 192% from the previous month. This momentum continued into December, with Solana-based NFTs seeing around $365 million in monthly sales, just shy of Ethereum's $353.2 million.
Solana's increased NFT sales align with the uptrend of the Solana token, which has been increasing in price since December 2023. The current trading price stands at $102.73, marking a 302% increase as of during the past year based on data from Coingecko.
Although sales volume slowed slightly in January, Solana NFTs still saw over $239 million in sales. In February, the monthly sales volume was $161 million. These consecutive months of robust performance have propelled Solana NFTs to surpass $1 billion in sales volume in the last nine months alone.
Analysts predict Ethereum decline
The increase in sales volume and transactional activity could be attributed to the broader enthusiasm surrounding the Solana ecosystem and the buzz surrounding specific projects offering potential incentives such as airdrops and additional perks.
For example, Tensorians, an NFT initiative affiliated with the prominent Solana Tensor marketplace, saw trading volumes totaling $28 million in December. Mad Lads recorded transactions amounting to $24.5 million during the same period.
JPMorgan analysts, led by Nikolaos Panigirtzoglou, have predicted a decline in Ethereum's market share in the NFT space, with competitors like Solana gaining ground. Citing congestion issues and exorbitant gas fees plaguing Ethereum, analysts have noted a significant migration of NFT applications to alternative blockchains, with Solana becoming the main beneficiary.
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