NFTs on the Solana blockchain (SOL) are experiencing a resurgence in activity despite a generally volatile NFT market. The Block Research data dashboard shows that the number of new NFTs minted on the Solana blockchain has increased by 700%.
According to the dashboard, the volume of NFTs minted on Solana increased from 39,000 recorded on September 4 to 312,000 in three days. In addition, NFT trading volume on Solana recorded its highest figure since May of this year, reaching $11.5 million on September 6. The market share of Magic Eden, an NFT transaction platform built on the Solana blockchain, increased from 12 percent to 36.6 percent.
Since its inception, Solana’s NFTs have been a small part of the overall non-fungible collectibles and digital arts ecosystem. The recent performance of NFT exchanges on the blockchain is a ray of hope for the broader NFT market. Currently, the broader NFT market has yet to recover from the terrible plunge it took earlier this year.
It is not yet clear whether Solana has regained the confidence of skeptics. However, the SOL network seems to be attracting interest from the crypto community with increasing mentions and engagements on social networks. In addition, there are indications that Solana’s team has resolved its downtime issues. A few days ago, Messari announced on Twitter that Solana had exceeded 2000 knots.
.@Solana has been able to scale to over 2000 nodes today.
Still, because transaction fees (revenue for validators) are so low on Solana, the decision to run a node becomes a break-even calculation based on how valuable the inflationary rewards paid are. pic.twitter.com/PHzuohUEFs
– Messari (@MessariCrypto) September 7, 2022
For now, it is difficult to run a Solana node because the 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 members of the SOL community.
Solana defends its NFTs with recent projects and innovations
Dust Labs, the project behind the popular DeGods and the y00ts NFT collection, announced a $7 million fundraising round earlier this week. This month, the company has seen $9.6 million in secondary sales of the collection “y00ts mint t00b“. Dust Labs listed Jump, FTX and Solana Ventures among its backers.
Magic Eden founder Zhuoxun “Z“Yin, said that the successful launch of y00ts shows that Solana is robust. According to Zhuoxun:
“I think people are realizing that Solana is quite liquid as an NFT market, despite the bear.”
Recently, Goatswap launched Solana’s first Automated Market Maker (AMM). The AMM will allow users to create pools to automatically trade NFTs. Solana currently ranks 6th among all blockchains in terms of the value of crypto assets committed to a DeFi protocol. Recently, Solana has surpassed Ethereum in terms of developer growth. In addition, Solana is currently the blockchain with the second largest market volume.
In 2021, Solana launched the Phantom Wallet for its blockchain and quickly registered over 2 million users. Earlier this year, Solana launched Solana Pay, a free, decentralized, open-source framework built on the Solana blockchain. The payment protocol provides a specification that allows users to send digital currency in dollars from their wallet to a merchant. The company said users can send any SOL token without the need for a middleman. According to Solana Labs’ head of payments, 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 payments across physical and online commerce.“
Regardless of improvements and innovations, the SOL part’s prolonged history of downtime still makes investors cautious.