Despite Network Outages, Solana Trumps Ethereum As NFT Sales Hit $947 Million
The sale of Non-Fungible Tokens (NFTs) has remained almost uniform in volume in the past few months despite the current downturn occasioned by the broader financial market and other factors.
Solana has again recorded a higher NFT trading volume than Ethereum, the largest blockchain for decentralized applications (DApps). Despite Ethereum being the more extensive network, it has continued to trail Solana in terms of NFT transaction volumes in recent weeks.
The last six weeks have seen NFT trading on Solana rise from 7% to 24%, with the number of unique buyers increasing by 34% in September. Ethereum, on the other hand, has witnessed a decline in volume since April, even as it houses top NFT collections, including CryptoPunks and Bored Ape Yacht Club (BAYC).
The reason for the growth of NFT sales on Solana can be linked to its low transaction fees. Fees on Solana are far cheaper than Ethereum, allowing users to buy collectibles at fair value, while developers are drawn towards it because of its speed and transaction costs.
The NFT market, which recorded over $4 billion in January, has sharply declined over the months to stand at $947 million in September. In June, NFT volumes topped the $1 billion mark, with July and August recording $916 million and $927 million, respectively.
Solana’s downtime happens for the umpteenth time
The Solana network has been hailed for its fast transaction processing speed and low fees, but it has failed to deal with technical issues that have cast a dark cloud over the network’s future. A misconfigured node on the last day of September caused a network outage, bringing the number of network issues to 12 this year alone.
Despite the frequent outages, digital collectors have made Solana their home in recent weeks. There has been a lot of speculation from several fronts that the outages on the network may prevent it from moving to the next level in its plans to overthrow Ethereum, with many users saying that the “Ethereum killer must be better in terms of network strength and stability.”