NFTs on the Solana (SOL) blockchain are seeing renewed activity despite an overall unstable NFT market. Block Research’s data dashboard indicates that the number of new NFTs minted on the Solana blockchain has increased by 700%.
According to the dashboard, the volume of NFT minted on Solana increased from 39,000 recorded on September 4 to 312,000 in three days. Additionally, NFT trading volume on Solana recorded the highest figure since May of this year, reaching $ 11.5 million on September 6. The market share of Magic Eden, a Solana blockchain-based NFT transaction platform, has increased from 12% to 36.6%.
From the start, Solana’s NFTs have been only a small part of the overall ecosystem of non-fungible collectibles and digital arts. The recent performance of NFT exchanges on the blockchain is a beacon of hope for the broader NFT market. Currently, the overall NFT market has yet to recover from the dire decline it experienced earlier this year.
It is not yet clear whether Solana has regained the trust of the doubters. However, the SOL network appears to be attracting the interest of the crypto community with an increase in mentions and engagements on social media. Additionally, there is some evidence that Solana’s team has resolved the downtime issues. A few days ago, Messari announced on Twitter that Solana had exceeded 2000 knots.
.@Solana was able to scale up to over 2000 knots today.
However, because the transaction fees (revenue for validators) are so low on Solana, the decision to execute a node becomes a break-even calculation based on how valuable the inflation premiums paid are. pic.twitter.com/PHzuohUEFs
—Messaries (@MessariCrypto) September 7, 2022
At the moment, it is difficult to manage 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 low fees. However, these low rates are a major attraction for SOL community members.
Solana defends its NFTs with its recent projects and innovations
Dust Labs, the project behind the popular DeGods and NFT y00ts collection, announced a $ 7 million fundraiser earlier this week. This month, the company recorded $ 9.6 million in secondary sales from the collection. “y00ts new t00b“. Dust Labs has listed Jump, FTX, and Solana Ventures among its supporters.
The founder of Magic Eden, Zhuoxun “ZYin said the successful launch of y00ts shows Solana is sturdy. 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 sixth among all blockchains when it comes to the value of cryptocurrencies engaged in a DeFi protocol. Lately, Solana has surpassed Ethereum in terms of developer growth. Furthermore, Solana is currently the blockchain with the second 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, an open source, decentralized and free framework based on the Solana blockchain. The payment protocol provides a specification that allows users to send dollar digital currencies from their wallet to a merchant. The company said that users can send any SOL token without the need for an intermediary. According to Solana Labs Payroll Manager, Sheraz Shere, “While Solana Pay will provide smooth payments to Web3 participants in the Solana ecosystem, we believe this protocol transcends Web3 and will be transformative for payments in physical and online commerce.“
Regardless of the improvements and innovations, the SOL coin’s long history of downtime still makes investors wary.