NFTs, or non-fungible tokens, have become one of the hottest topics in the world of blockchain technology. These digital collectibles have been making waves in the world of art and digital ownership, offering creators an opportunity to monetize their work and collectors a chance to own unique digital assets. However, 2023 has been a volatile year for NFTs, particularly those on the Ethereum blockchain. While Ethereum has long been the go-to blockchain for NFTs, interest in Ethereum NFTs is on the decline, and sales volumes have been decreasing in recent weeks. However, this doesn’t mean that NFTs are losing steam altogether. In fact, NFTs on alternative chains such as Polygon, Solana, and Cardano are only gaining momentum.
According to data from various analytics platforms, including CryptoSlam and Sealaunch, NFTs on Polygon, Solana, and Cardano are experiencing positive momentum. In particular, Cardano briefly surpassed Polygon as the fourth most popular platform in terms of sales volume on April 24. This was largely due to increased interest in the Goofy Gophers and Spacebudz projects, which dominated the trading volume during the period. Although Cardano has since dropped back to number seven in sales volume as of April 26, the number of buyers and sellers on the platform has increased significantly over the past seven days, up by 42% and 51% respectively.
Solana also saw a jump in trading volumes over the past week following the release of the Mad Lads NFT collection. As of April 22, Mad Lads was responsible for $8 million of the $9.9 million in total sales recorded on the day, which helped Solana’s sales volumes shoot up by a whopping 129% over the past week. Data compiled by Sealaunch also shows that Polygon has experienced positive momentum over the past few days, thanks to the recent migration of yOOts from Solana, which has led to an increase in sales volumes for Polygon over the past week. Notably, yOOts is responsible for the majority of Polygon’s NFT trading volume on both OpenSea and Magic Eden.
Despite the success of NFTs on alternative chains, Ethereum remains the biggest player in the NFT market. However, Ethereum’s situation is not as optimistic as that of alternate blockchains. Ethereum’s trading volumes have decreased by over 7% in the past week, and the number of transactions on the network is down by 18% over the same period. This downturn is particularly concerning as the NFT market is already showing signs of slowing down during an extended crypto winter.
The impact of this slowdown can be seen on a larger scale, as the number of unique users across top NFT marketplaces, such as OpenSea, Blur, and LooksRare, has taken a significant hit. According to data from SeaLaunch, this figure has dropped to 7,805 as of April 19, which is the lowest point since July 2021.
While Ethereum continues to dominate the NFT market, the success of NFTs on alternative chains is a clear indication that the market is evolving. As blockchain technology and NFTs continue to gain mainstream acceptance, we are likely to see more players emerging in the NFT space. The success of NFTs on Polygon, Solana, and Cardano also highlights the importance of diversifying digital asset holdings across different blockchains.
In conclusion, NFTs on alternate blockchains such as Polygon, Solana, and Cardano are experiencing positive momentum, while Ethereum’s NFTs are showing signs of slowing down. While Ethereum remains the biggest player in the NFT market, the success of NFTs on alternative chains is a clear indication that the market is evolving. As the market continues to evolve, it’s essential for investors to diversify their digital asset holdings across different blockchains.
