Cryptos
Solana Crypto Is Growing its NFT Market Share, Hurting Ethereum
This will last even though Coinbase is developing its own NFT marketplace
Solana crypto (SOL-USD) is becoming a much more viable alternative to Ethereum (ETH-USD) for people who want to buy, sell and mint NFTs (non-fungible tokens). The reason is its transaction fees are much cheaper, and its overall processing speed much better than Ethereum.
In fact, Ethereum is now very congested, and its gas fees (transaction costs) are very high. In fact, one analyst on DappRadar, recently wrote an interesting article, “Is NFT Hype Killing Defi on Ethereum?”
The author shows that despite the increasing interest in NFTs, including minting and trading, Ethereum is losing market share as a result of its huge transaction costs. NFT marketplaces other than Opensea, the largest marketplace and which only uses Ethereum, are now sprouting up. They are taking market share away from Ethereum.
Much has been written about the competition between Solana and Ethereum. But there is no area greater where this shows up than in NFTs. I recently wrote an article in InvestorPlace that analyzed this phenomenon and why Ethereum is likely to lose market share.
