Written by: 0xLaughing, Rhythm BlockBeats
「SOL Community > ETH Community.」
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Solana NFT hits the ground running on OpenSea
In the NFT market, Solana's supporters have always preached on the advantages of "fast transaction speed", "almost no handling fee", and "low threshold". But at the same time, there are many criticisms of Solana NFT: "rug pulls everywhere", "frequent downtime", "not as decentralized as Ethereum", etc., and even ridicule it as those who can't afford Gas The “poor man’s blockchain” that NFT players choose next.
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NFT Market: "The Cliff Is Now"
The popularity of NFT has been soaring since 2020. From the emergence of Cryptopunk and BAYC, to the emergence of PFP NFT projects such as Doodles, Azuki, Moonbirds, etc. At the same time, many stars such as Neymar, Jay Chou, and Eminem have entered the circle, making NFT gradually enter the public eye And become known to people at a very fast speed.
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Changes in the total market capitalization and transaction volume of the NFT market (source: NFTGO)
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ETH-based NFT transactions on OpenSea continue to decline (Source: Dune)
As the time came to April and May of this year, the entire encryption market has become exhausted under the expectation of the Federal Reserve raising interest rates. At the beginning of May, the release of the "Otherdeed for Otherside" series under Yuga Labs has squeezed out the NFT market. The last sliver of liquidity, the Luna/UST thunderstorm incident caused investors to panic sell all kinds of investment assets in their hands, and NFT is no exception. The chain data on Dune shows that the trading volume of ETH-based NFT on OpenSea has continued to decline. The daily trading volume of the day is not even one-tenth of the peak value.
"The bear market is really coming."
In the process of entering a bear market, asset shrinkage is only one aspect, and NFT investors are more afraid of a sudden drop in liquidity.
It is true that compared with FT (Fungible Token), the liquidity of NFT (Non-Fungible Token) is the most urgent topic, "Token can at least be sold in the market with one click, and NFT will really return to zero if it cannot be sold. ". The sudden drop in liquidity is reflected in the current NFT trading market: almost all NFT trading volumes have declined, and unknown NFT projects have only a few transactions a day or even zero transactions, and investors eager to cash out are scrambling to keep prices down. The trend of the price K-line was destroyed, and the consensus established in the early stage collapsed one after another, and the project party had nothing to do about it.
In such drastic changes in the environment, optimistic investors are betting on the future of the NFT market and looking forward to potential incremental funds, but the danger is that although the NFT market has high hopes, its users and capital growth has slowed down significantly.
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Solana NFT Marketplace: "Punching on the Gas Pedal"
Insufficient incremental funds in the NFT market make it difficult for most NFT projects to get out of the "red sea" where stock funds are fighting.The top blue-chip projects can still take a breather after eating up the market dividends by virtue of their first-mover advantage and head advantage, while those new projects recently issued on the ETH chain are facing the dilemma of being born or dying. The top NFT projects will also collapse.
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The total Solana NFT floor price has continued to rise over the past few months (Source: SolanaFloor)
From the data analyzed by Dune, it can be seen that the number of NFT transactions on Magic Eden, the largest NFT trading platform on the Solana chain, increased significantly in April and May. The data on SolanaFloor also shows that in the past few months, the total floor price of Solana-based NFT has continued to rise. As Solana NFT continues to heat up, Magic Eden's daily transaction volume even once surpassed OpenSea.
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Okay Bears skyrocketed after launch (Source: Sol Sniper)
On April 27th, Okay Bears was publicly sold on the Solana NFT market Magic Eden at a price of 1.5 SOL. Since then, the price has skyrocketed, and the floor price once exceeded 260 SOL. In the past less than a month, Okay Bears has created amazing transaction data: the cumulative number of transactions exceeds 20,000, and the cumulative transaction volume exceeds 1.4 million SOL, ranking second in the total market value of Solana NFT.
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Solana vs Ethereum: "The Battle of the Public Chains"
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Transaction speed and transaction fees
Solana has been committed to becoming "the fastest high-performance public chain" from the very beginning.
It uses the history proof mechanism (PoH), Tower BFT algorithm, Turbine communication protocol, Sealevel engine (Sealevel) and other technologies to build a completely different system architecture, which makes it have a higher speed and lower speed than other blockchains. the cost of.
Average transaction fees for each chain (source: A16Z)
Average transaction fees for each chain (source: A16Z)
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Over 70,000 ETH was burned on May 1st (source: glassnode)
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Yuga Labs said it will refund the Gas Fees spent by users due to transaction failures
tweetstweets, saying that it will refund the Gas Fee that users have spent due to failed transactions. "Obviously, ApeCoin needs to be migrated to its own chain in order to scale properly." From this, it can be seen thatimage description
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The "trilemma" of blockchain
Vitalik Buterin, the founder of Ethereum, once proposed that there is a "trilemma" (Trilemma, also known as the impossible triangle) in the development of blockchain, which refers to:It is difficult to guarantee decentralization, security, and scalability at the same time.Compared with Ethereum, Solana sacrifices a part of decentralization while ensuring security and high performance.
From the development perspective of validator nodes, Solana can currently process up to 65,000 transactions per second, and high throughput means that the hardware requirements for running validators are extremely high. The high barrier to entry makes the Solana Foundation the only entity to develop a core node on the Solana blockchain, which means it can control the network, thereby reducing the degree of decentralization of the network. The Solana network has been down many times, and the top-down solution has attracted many skeptical voices:image description
Public Chain Initial Token Distribution Announced by Messari
On different blockchains, delegating tokens to validators is an inherent driving force behind securing the network. Therefore, when comparing the degree of decentralization of the Solana and Ethereum networks, it is also important to compare the token distribution of the two.
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Prospects for Solana NFT: "Curve overtaking"
Nobel laureate Herbert Alexander Simon once pointed out: "In today's era of rapid information development, the value of attention will exceed information."
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DeGods founder Frank thanks Okay Bears for bringing Solana NFT to more attention
The explosion of Okay Bears has made more people understand that Solana NFT also has a strong wealth-creating effect. Frank, the founder of DeGods, the No. 1 project in Solana NFT market value, even tweeted his thanks: "DeGod holders would like to express their gratitude to Okay Bears, they have brought more attention to Solana."
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Magic Eden leads "SOLANA SUMMER"
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Comparison of the trading volume of the three major ETH NFT exchanges (Source: Dune)
In the article "ETH or Solana's NFT: The Chicken and Egg Problem", the author Mr. Fox believes that even if NFT trading platforms such as LooksRare and X2Y2 use "vampire attacks" such as low fees and token rewards to compete with OpenSea, but The main reason why they still can't win is that the same NFT has higher liquidity on OpenSea. This is indeed the case. From the data on Dune, we can see that OpenSea's share of ETH NFT's transaction volume has always remained above 50%.
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Okay Bears trade volume comparison between OpenSea and Magic Eden (Source: Dune)
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Magic Eden’s share of Solana NFT market volume (Source: Dune)
Not just Okay Bears, Magic Eden accounts for more than 95% of the entire Solana NFT market volume, that is to say,For all Solana-based NFTs, Magic Eden reigns supreme in terms of liquidity.
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"Sinking market" may be the mainstream market
Pinduoduo made the concept of "sinking market" break into the public eye. Looking back on 2018-2019, Pinduoduo first tore a crack in the e-commerce industry dominated by Ali and JD.com, and then used rapid growth again and again to turn this crack into a territory. Today, Pinduoduo has become a heavyweight player that cannot be ignored in the e-commerce market.
What did Pinduoduo do right? Obviously, there is definitely more than one reason, but the sinking market has played an absolutely important role in this.
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More and more NFT KOLs are investing in Solana NFT (Source: Inspect)
Many fans of Ethereum NFT believe that those who invest in NFT players on Solana are because they cannot afford high fees on Ethereum, and even ridicule Solana as a "poor blockchain". Saving more handling fees to invest in your favorite NFT has become a disadvantage, which is really puzzling. In fact, many well-known NFT KOLs and giant whales are also investing in Solana NFT.
It is true that NFT has certain social attributes and luxury attributes. People can guess the value of the person on the opposite side of the screen as long as they use the hexagonal avatar on social media. NFT is trying to create a new class ladder, but for those who stand at the gate of the Web 3.0 world and look inside, the entry threshold of hundreds or even thousands of dollars is not conducive to NFT getting out of the circle. If you bet on the future NFT will It is the standard configuration of every Web3.0 member, and the low-priced NFT will also be a necessity in the market. NFT should not just be a game for the rich or capital, the artistic value behind them also needs to be touched by the public.
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Summarize
The competition of the public chain is "thousands of troops crossing a single-plank bridge", and the development of NFT essentially depends on the development of the public chain it is based on. Compared to Ethereum, Solana is currently not as decentralized as many people hope, but I believe this problem will improve over time. For Solana NFT, the concept of parity has been deeply rooted in the hearts of the people, but more "explosive items" like Okay Bears are still needed to prove that they also have amazing wealth-making capabilities.
It still takes time for the consensus to build up, let the bullets fly for a while.
