Solana (SOL) Attracts More NFT Users Than Ethereum (ETH), Polygon (MATIC)

Based on recent on-chain activity, the latest data shows that Solana is the king of NFTs, especially in terms of the number of minted items.

Solana (SOL) has been outperforming the market lately, with SOL price up over 30% in the last month. This strong performance comes as the crypto market is cooling off, with Bitcoin (BTC) and Ethereum (ETH) prices both down around 10% over the same period.

Part of the reason for Solana's outperformance is likely due to the increasing NFT activity on the network. According to the latest data from NFT Pulse, Solana saw 8,400 active NFT users in the last day, nearly double the 4,700 users on Ethereum. This strong NFT activity is also evident in the total NFT trading volume, with Solana generating 2.1 million SOL (around $400 million) in the last day, compared to just 10,600 ETH (around $17 million) on Ethereum.

However, despite having more active NFT users and higher NFT trading volume, Ethereum still generates the most trading volume in USD terms. Over the last day, nearly $4.7 million in trading volume has been generated on the first smart contracts platform, over 2X more on Solana at around $2.1 million. Over $7.3 billion worth of NFTs in the last year have been traded on Ethereum, more than 3X on Solana at just $2 billion.

The shift in user count, favoring Solana, is primarily due to the network's low transaction fees and high scalability. Although Ethereum fees might be higher, gas prices have been on a downward trend over the months.

Dropping fees could be partly due to efforts done by Ethereum developers to enhance user experience. Early this year, the smart contracts platform activated Dencun, a hard fork that made layer-2 transactions cheaper. The cheaper it is to deploy smart contracts and mint NFTs, the more users there are. Over the last week, Base, one of the largest Ethereum layer-2s by total value locked (TVL), drew over 14,500 users.

As Solana chain activity ramps up, traders watch whether bulls will push higher, breaking above $190. A break above this level could see SOL soar to 2024 highs of $210.

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