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 👇
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
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 $UST ‘stablecoin’ has been identified as a primary cause of this extreme and painful price volatility, which has racked participants across the board.
Case Study ONE: Ethereum NFTs
An executive’s summary of the Ethereum NFT ecosystem:
US Dollar (US$) 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:
Strong marketing efforts by the team including incubating a new in-house X2Y2 collection
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
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: $APE).
We recently published a special deep dive for those looking to ‘nest’. For those who missed out on our recent feature analysis dedicated to the Moonbirds NFT collection, here’s a link to launch over to NFT Case Study with a side of Crypto OC, Edition #34.
Case Study TWO: Solana NFTs
An executive’s summary of the Solana NFT ecosystem:
Magic Eden continues its transaction dominance at 97%
When looking at trading volume denominated in the native token ($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.
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?
See you again for the next update.
- q
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