If you’re having a hard time deciding whether to choose Solana or Ethereum to create a non-fungible token (NFT), you’re in the right place. This guide describes the strengths, capacities, weaknesses, and overall differences of each blockchain so that you can make better decisions that meet your goals in the NFT market.
Ethereum: Ecosystem, Marketplace, Security
There is no doubt that Ethereum is the largest ecosystem in the DeFi (decentralized finance) sector and thousands of projects of all kinds are being built. Therefore, it is not surprising that most of the NFTs are running as ERC-721 tokens.
To be precise, about 95% of all NFT ecosystems use Ethereum, so investors Find NFT MarketplaceThey usually first encounter OpenSea, Rarible, Nifty Gateway, etc.
When it comes to size, Ethereum is in control of far more buyers and sellers, or transaction volumes. Therefore, creating an NFT in an Ethereum-based marketplace like OpenSea will give you more exposure and allow people to buy or bid on the NFT. On the other hand, we all know that there is a large supply of NFTs that no one wants to buy or bid on.
Want to create your first NFT in OpenSea?Check out the step-by-step guide here..
The Ethereum attributes position Ethereum as one of the top ecosystems for launching DeFi projects. That data architecture and security components are why so many developers are building on top of that blockchain.
However, when network activity increases exponentially (which happens frequently), there is a large transaction backlog on the network. This can significantly increase transaction charges, which typically exceed the number of digits per transaction, and can impact the number of users. I can afford to create an NFT.
This has led NFT authors and collectors to look for alternative blockchains with higher throughput, scalability, and lower gas rates.One option that has become a very serious competitor Solana — A high-performance blockchain that leverages various cryptographic mechanisms to extend the network (more on this later).
Paying high gas charges can sometimes be a crippling experience, but the advantage is that there is a lot of money flowing to Ethereum. Therefore, the ceiling inversion is much higher. data According to a CryptoSlam article, Ethereum has sold more than $ 1.8 billion over the past 30 days, compared to $ 120 million in the Solana-based market.
Current data from CryptoSlam show that the most popular NFT collection on the market exists on the Ethereum blockchain.These include: CryptoPunks, Boring Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), etc.
According to additional data, Ethereum’s average NFT selling price (as of the fourth quarter of 2021) was about $ 3,000 compared to Solana’s $ 1,000.
Solana: throughput, low rates, growing ecosystem
Solana is in control here in terms of technology, functionality, and versatility.
Solana is a high-performance blockchain that uses a consensus mechanism called Proof-of-History and leverages a set of protocols to execute transactions at high throughputs in excess of 60,000 transactions per second (TPS).
In Solana, transaction costs are usually less than $ 1. Many NFT projects and collectors are migrating to Solana to benefit from scalability and low transaction fees. They have more freedom to build a project without suffering from technical limitations. That’s why Solana has become a popular NFT hub.
Creating an NFT in a Solana-based market like Solsea can be very cheap, fast and easy to profit after it hits the secondary market. Solana mint is usually snapped quickly and the loyalty of the Solana-based market is often higher than that of the Ethereum-based market.
Solana’s ecosystem isn’t as big as Ethereum, but that doesn’t mean it’s not growing.In fact, Solana’s user base has grown at a much faster pace since the beginning of 2022, even analysts at investment bank JP Morgan. Claim In the long run, it will be able to overtake Ethereum.
According to CryptoSlam data, Solana’s NFT market has gained significant momentum throughout the third quarter of 2022. By the end of January, ecosystem sales had exceeded $ 1 billion.
One of the most popular collections on the Solana blockchain is the Degenerate Ape Academy, a collection of 10,000 unique NFT apes.
They may look like Ethereum’s boring apes, but they have their own set of features.
They can also be quite expensive. Degen Ape’s highest sales were $ 1.1 million in September 2021. However, in mid-December, the Solana Monkey Business collection NFT sold for over 13,000 SOL, or about $ 2 million.
A growing ecosystem is often a great opportunity for early adopters to reach the top of the list by the time they reach more viewers. However, one of the problems is usually the high risk. Solana Network has been suffering since the beginning of 2022 Some downtimeForced the user to liquidate the position because the collateral could not be replenished during the outage.
Another concern developers have recently raised is the rise of rug pull in Solana. This is usually a new technology issue, as scammers try to find and exploit the weaknesses they find. However, rug pulls and scams can occur on both sides of the story, so not only security issues, but also thorough research should be done before investing in NFT or DeFi projects.
Rugpulls are the most common type of scam in the DeFi ecosystem.If you want to learn how to find them, check out the latest guide About the problem.
Each blockchain has its own strengths and weaknesses, so what you really want to do with each. If you’re looking for a high-throughput blockchain with scalability and low gas rates, Solana may be a better choice.
- Higher throughput and scalability.
- A growing ecosystem.
- Low gas rates and eco-friendly.
- Creating an NFT is cheap and relatively easy.
- Insecure network.
- Lower exposure in smaller markets.
- Downtime is more frequent.
Now, if you want to be exposed to a bigger market and want to profit from the security side, Ethereum may be better.
- Access to larger markets.
- High network security.
- NFTs are sold at much higher prices on average.
- Network congestion can cause transaction delays.
- Reduces throughput and scalability.
- A significant percentage of users who want to create an NFT may not be able to pay transaction fees.