There are numerous blockchains on which creators can build NFTs, however the Ethereum and Solana Blockchain NFTs are ruling the market today for various reasons. But before we delve into which blockchain is better, here are some existing facts on NFT sales and trends that might help describe the influence these digital assets (NFTs) have had thus far;
NFT traders spent over $5 million on three distinct NFT products in 2022, which is beginning to confirm the prospects. One is a $6.19 million artwork by XCOPY that sold for 1630 ETH after being purchased for 1000 ETH three months ago. It may appear tough to cut through the noise and hype while maintaining a firm grasp on the blockchains that are now outperforming NFTs. The Ethereum and Solana blockchains NFTs are far ahead of the pack. And here comes the twist, which will give a higher yield? Take a drink and unwind; the following step is a brief dive to help you figure it out.
The State of Ethereum Blockchain
Most people know the Ethereum blockchain as the “Queen of Blockchains.” Ethereum’s major goal is to be a decentralized computing network that supports third-party data, which it has accomplished by hosting numerous DApps, DeFi projects, and smart contracts. It was introduced in 2014 and is based on the Proof of Work (PoW) algorithm, which allows it to surpass the Bitcoin network. It executes 13-15 transactions per second, which is faster than Bitcoin.
Even with those benefits, the blockchain’s main issue is scalability and high gas fee. These issues will be rectified now that Ethereum 2.0 news is circulating.
NFTs On the Ethereum Blockchain
The Ethereum blockchain has a large number of NFTs launched on it. It has sold record-breaking art NFTs, such as a Cryptopunk NFT that sold for $532 million in 2021. Many CryptoPunks are now well-known for selling their work for millions of dollars. And just like the saying in the cryptosphere, history repeats itself. Many crypto charts can attest to that. There is a higher chance for one Ethereum-based NFT to sell far beyond even for $1billion. Going through the huge list of Ethereum blockchain-based projects that have created a reputation for themselves as they give their traders huge returns in the NFT industry might bore you.
Ethereum-based NFTs performance is this grand because Ethereum blockchain has been a participant in the game for a long time. The Ethereum blockchain was one of the key protocols that aided in the creation of digitally scarce collectibles using its underlying technological frameworks.
The State of Solana Blockchain
The Solana blockchain debuted in the heart of 2020. The creation of the Solana ecosystem is a wise step because it provides diversity to the Ethereum foundation. This concept of Solana blockchain as a selling feature attracted additional technology. Solana claims to be able to process 50,000 transactions per second while only costing a fraction of a penny to validate transactions on its blockchain. Unlike Ethereum’s PoW consensus method, Solana’s underlying technology is based on the Proof of History (PoH) consensus process.
NFTs On Solana Blockchain
While competing against Ethereum, NFTs on the Solana blockchain appear to be gaining popularity, and this would attract more returns for its traders.
Solana NFTs had a good year in 2021, with one of the Degenerate Ape NFTs selling for $1 million. That was the first time a Solana-based NFT was valued at such a high level. A month later, a new all-time high for Solana-based NFTs was set when an NFT sold for $2.1 million. NFTs like Bored Ape Yacht Club NFTs or CryptoPunks aren’t yet available in the Solana Ecosystem. But there are also NFTs projects with strong communities and good potential to grow your wallet, such as Galactic Geckos Space Garage (GGSG) NFTs, Solana Monkey Business (SMB) NFTs, and so on. The current SMB monkey floor price is 175 SOL, which means that the cheapest monkey would sell for roughly $30,000. While the blockchain is still attempting to find its footing, Solana-based NFTs have topped $1 billion in cumulative sales.
Which Should You Invest In?
You have to consider many factors when deciding which of the two blockchains will provide you with huge returns. Factors such as the sentiments of the crypto community. Ethereum has clearly attracted a devoted following of supporters who are confident in the protocol’s ability to prosper. It has its own worth in the community that cannot be replicated because it has played such an important part in the development of NFTs. Due to this, the Ethereum-based NFTs are expected to outperform their set records. Will this belief, however, stand the test of time? “Ethereum’s supremacy in non-fungible tokens (NFTs) is eroding due to congestion and expensive gas fees,” according to JP Morgan’s analyst analysis. JP Morgan also warned that if Ethereum’s loss of NFT share of the market continues in 2022, it might pose a greater threat to its value.
Furthermore, in a recent report, Nikolaos Panigirtzoglou confirmed that the Ethereum network’s market share of NFTs has declined. It has declined to roughly 80% from around 95% at the start of 2021. Given this supposition and facts, as a long-term investor with Ethereum 2.0 still a long way off; It’s only logical to start looking at other options with promising futures. That leaves the Solana blockchain, a blockchain that permits fast and cheap transactions in the picture. This blockchain, still in its infancy, has performed wonderfully. However, neither OpenSea nor the famous MetaMask wallet allows you to purchase Solana NFTs. As a result, there is a significant gap between the ecosystems. However, if the Solana Ecosystem can overcome the accessibility barrier and become as widely used as the Ethereum platform; Its NFTs will be as rewarding as those on Ethereum platforms.
Even with the challenges mentioned above, the Ethereum blockchain is still in play. A 2ETH worth of art NFT you got for close to 0.5ETH gas fee might sell for 50ETH later on. Even while the gas fee might initially seem high; The huge profits would cover up for it in the long run. However, It can also go sideways, believe me.
Most investors and traders consider gas fees when buying/selling their NFTs. This is why Solana blockchains benefit from more users flocking in because they collect reasonably low gas fees. This is a plus for all Solana-based NFTs. Solana-based NFTs still in their young age offers you the opportunity to be an early bird. And you should know what that means in the crypto niche, simply a golden chance. With Solana-based NFTs rapidly growing; We may witness an increase in the number of investors around Q2 of 2022 or Q1 of 2023. You can only imagine more users, more profits for you.
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