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The number of NFTs minted on the Solana blockchain as well as the transaction volume have spiked significantly in only a few days.
Nonfungible tokens (NFTs) on the Solana (SOL) blockchain are experiencing a surge in activity despite an overall unstable NFT market. The Block Research’s Data Dashboard indicates that the number of new NFTs minted on the Solana blockchain increased by a massive 700%.
According to the dashboard, the volume of minted Solana NFTs rose from 39,000 recorded on September 4 to an overwhelming 312,000 high within three days. Also, NFT transaction volume on Solana recorded its highest figure since May this year, hitting $11.5 million on September 6. The market share of Magic Eden, an NFT trade platform built on the Solana blockchain, grew from 12% to 36.6%.
From inception, Solana NFTs have only formed a small portion of the overall nonfungible collectibles and digital arts ecosystem. The recent performance in the blockchain’s NFT trading is a glimmer of hope for the broader NFT market. Currently, the general NFT market is still yet to recover from the terrible dip it suffered earlier this year.
It remains unclear whether Solana has regained the trust of skeptics. However, the SOL network seems to generate interest from the crypto community with increasing social media mentions and engagements. Also, there are indications that the Solana team has fixed its downtime issues. A few days ago, Messari tweeted that Solana has scaled over 2000 nodes.
At the moment, running a Solana node is difficult because transaction fees on the blockchain are low. This means that validators must determine the best way to monetize transactions regardless of the meager fees. However, these low fees are a major attraction for people in the SOL community.
Solana Building a Case for Its NFTs through Recent Projects and Innovations
Dust Labs, the project behind the popular DeGods and NFT collection y00ts, announced a $7 million fundraising earlier this week. This month, the company saw $9.6 million in secondary sales of the “y00ts mint t00b” collection. Dust Labs listed Jump, FTX, and Solana ventures as their backers.
The founder of Magic Eden, Zhuoxun “Z” Yin, said the successful launch of y00ts shows that Solana is robust. According to Zhuoxun:
“I think people are realizing that Solana is pretty liquid as an NFT market still despite the bear.”
Recently, Goatswap launched Solana’s first Automated Market Maker (AMM). The AMM will enable users to create pools to trade NFTs automatically. Solana currently ranks 6th among all blockchains regarding the value of crypto assets committed to a DeFi protocol. Lately, Solana has outgrown Ethereum in terms of developer growth. Also, SOL is currently the blockchain with the second-largest market volume size.
In 2021, Solana launched the Phantom Wallet for its blockchain and quickly registered over 2 million users. Earlier this year, Solana launched Solana Pay, an open-source, decentralized, and free-to-use framework built on the Solana blockchain. The payment protocol provides a specification that allows users to send digital dollar currencies from their wallet to a merchant. The company stated that users could send any SOL token without requiring an intermediary. According to the head of payments at Solana Labs, Sheraz Shere, “while Solana Pay will provide frictionless payments to Web3 participants in the Solana ecosystem, we believe this protocol transcends Web3 and will be transformational for the payments across physical and online commerce.”
Regardless of the improvements and innovations, the prolonged downtime history of the SOL coin still makes investors cautious.