Solana steals spotlight from Ethereum, leads way in DAOs, NFTs
- Ethereum-killer Solana witnessed a massive spike in NFT transactions over the past week.
- Magic Eden, the NFT marketplace on Solana, contributed to the increased transaction volume on the altcoin’s network.
- Solana price broke into a rally, posting 10% gains overnight.
In a monthly community update, developers at Solana revealed that investment focused DAO, Athens DAO, considers Solana ideal for governance and cheap transactions. Relative to Ethereum, transaction costs on Solana are low, and this has contributed to high NFT transactions on the altcoin’s network.
Solana beats Ethereum in NFT transaction volume
Magic Eden, the latest NFT marketplace on Solana, is considered a competitor to peer-to-peer marketplace OpenSea.Magic Eden contributed to high transaction volume on the altcoin’s blockchain due to its fast-growing status.
Over the past week, the transaction count on Magic Eden hit 360,734. Based on data from DappRadar, the total transaction volume on Magic Eden has surpassed $1.6 billion. Despite the recent drop in the trade volume of DeFi and NFTs, in response to the crypto bear market the total NFT transaction count on Solana beat Ethereum. Over the past seven days, total transactions on Ethereum came up to a little under 500,000, while Solana noted almost 630,000 transactions. The activity on the Solana network was 32.6% higher than Ethereum, though the total value locked on the altcoin remains much lower.
There is a decline in NFT transactions on both the Ethereum and Solana networks compared to numbers observed in May 2022. However, the Ethereum-killer exceeded the transaction count of Ethereum since the launch of Magic Eden.
Solana is ideal for DAOs?
At the Hacker House event organized by Grape, a decentralized social-networking protocol, developers noted that Solana is ideal for DAOs. Dean Pappas, a core contributor to Grape, said, “To experiment in governance and think about all these new ideas, these wacky things, you need very cheap transactions, they need to happen fast, and you need a very good user experience.”
Solana price explodes, posts double-digit gains overnight
Crypto analysts at More Crypto Online believe Solana price is primed for a rally. Once the Solana price crosses $42.80, it would target the $48.41 level. Analysts have predicted a massive breakout in Solana once the altcoin crosses the two bullish targets.
SOL-USD price chart
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
