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NFT Fight Night: Solana vs. Ethereum, On-Chain Outlook, Edition #39 (16/05/2022)
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NFT Fight Night: Solana vs. Ethereum, On-Chain Outlook, Edition #39 (16/05/2022)

Silver lining in sight for NFTs 👀 Read on for the matchup of titans and find out what happens in the battle of NFT marketplaces. It's Solana vs. Ethereum 👇

Qluster.co
May 16
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NFT Fight Night: Solana vs. Ethereum, On-Chain Outlook, Edition #39 (16/05/2022)
research.qluster.co

Solana Summer. Don’t forget your sunscreen!

What. A. Week.

This is why there is never a dull moment in the wonderful world of Crypto.

Saving the gory details for a different discussion, we begin the weekly session with a brief recap of some crypto news headlines in the recent week past:

  • Do Kwon’s $LUNA and $UST bloodbath at the tail-end of last week

  • Forbes reports the total cryptocurrency market capitalisation fell further in response, shedding almost 11% of its valuation overnight

  • Shanghai’s High Court declared Bitcoin a virtual asset with economic value protected by Chinese law


Before reading on, make sure to stay tuned! We cover the latest stories in NFTs and publish insights from our Technical and On-Chain analysis for the crypto explorer 👇


Why did Crypto crash last week?

Now, we turn our attention to pressing matters at hand…

In this new week of on-chain action, let us first take stock of the overall state of the Non-Fungible Token (NFT) market during this last turbulent week.

The collapse of the Terra ecosystem has captivated headlines in alternative media outlets, with mainstream media also picking up the story. The tragic demise of the $LUNA token and $UST ‘stablecoin’ has been identified as a primary cause of this extreme and painful price volatility, which has racked participants across the board.

Click here to find out why crypto markets crashed last week. Get up to speed with our blow-by-blow analysis featured in Destabilising Stablecoins (a gambit by opportunistic ‘fundies’..?) 👉


Case Study ONE: Ethereum NFTs

An executive’s summary of the Ethereum NFT ecosystem:

  • US Dollar (US$) trading volume is down over 50% since last week.

    Note that this decrease has been severely impacted by the persistent downtrend in Ethereum’s valuation which is also down 29% week on week (WoW).

  • When looking at trading volume denominated in $ETH, there is a 33% WoW decrease

See the chart above. A comparison of OpenSea vs. LooksRare trend in US$ volume since the start of the current year.

When reviewing the respective market shares for each of the top exchanges, we can see that marketplace x2y2 is emerging over the last several weeks. This appears to be primarily due to:

  1. Strong marketing efforts by the team including incubating a new in-house X2Y2 collection

  2. 0.5% transaction fees, which are considerably lower than OpenSea’s transaction fee of 2%

See the chart above. X2Y2’s sudden increase in the last few weeks


[59:05] Watch the technical analysis featured in Edition #212. Tap here to find the video chapters included in the description (for your convenience 👀) 👉


What are the Top Collections on OpenSea right now?

At the moment, the top collection on OpenSea by the total volume of sales is Moonbirds.

Moonbirds is an NFT collection that was founded by Kevin Rose as part of the Proof Collective. Since its first day of listing, the Moonbirds collection has seized the market’s attention—with its NFTs weekly sales volume nearly trebling those of the Bored Ape Yacht Club (BAYC, Token: $APE).

Click here to read our analysis of why ApeCoin ($APE) went bananas, while Bitcoin took a dump (not once… but twice!) 👉

We recently published a special deep dive for those looking to ‘nest’. For those who missed out on our recent feature analysis dedicated to the Moonbirds NFT collection, here’s a link to launch over to NFT Case Study with a side of Crypto OC, Edition #34.

Share


Case Study TWO: Solana NFTs

An executive’s summary of the Solana NFT ecosystem:

  • Magic Eden continues its transaction dominance at 97%

  • When looking at trading volume denominated in the native token ($SOL)

    Unlike the Ethereum NFT marketplaces, current trading volume for SOL is comparable to levels of the past three weeks

  • The number of transactions made in the Solana NFT ecosystem also hovers around similar levels

See the chart above. Number of NFT transactions by the marketplace and per day.

Which is the most popular NFT collection on Solana (by trading volume?)

OkayBears continues to dominate the share of volume.

This domination by the OkayBears NFT collection is notable, with roughly 28% of the volume of $SOL traded across the entire ecosystem each day. The floor price of OkayBears has also jumped from around 80 $SOL to 235 $SOL as of this morning.

The chart below outlines the trading volume of the top NFT collections in the Solana marketplace—this Dune chart is sourced courtesy of @brownboy.

Fancy a closer look at OkayBears? Click here to read our recent analysis of the OkayBears NFT collection and find out what Qluster Data Labs discovers from the on-chain metrics… 👉


Well done! You’ve made it to the end of the article. Now, help us share our latest market intelligence with a friend.

Psst… we still need to log off (keep scrolling for tonight’s conclusion!)


Logging Off-Chain

It is quite possible that the Solana NFT ecosystem is setting itself up for another so-called ‘Solana Summer’.

As compared with semi-recent times, the US dollar price of Solana remains at relatively lower levels. This is why investors and vendors alike might enjoy an attractive entry point for many new NFT entrants, particularly while the value of $SOL is down.

Considering this for a moment.

Despite the recent collapse of the Terra ecosystem, a review of the on-chain metrics shows that both the transactions and active user counts have remained somewhat consistent with previous weeks.

This is definitely not the same story for Ethereum NFTs. However, that being said, most of the trading volume appears to come from OkayBears.

This also seems to be ushering in more serious collectors from the Ethereum NFTs.


Perhaps, some whale watching soon?

Leave a comment


See you again for the next update.

- q


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The information on this website is for general information purposes only. It is not intended as legal, financial and/or investment advice and should not be construed and/or relied on as such. Before making any commitment of a legal and/or financial nature you should seek advice from a qualified and registered legal practitioner and/or financial and/or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any legal and/or financial product. Qluster does not recommend and/or endorse products and does not receive remuneration based upon investment and/or other decisions 

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NFT Fight Night: Solana vs. Ethereum, On-Chain Outlook, Edition #39 (16/05/2022)
research.qluster.co
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