NFT Market Research: Will Ethereum and Polygon Emerge as the Future Winners?
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NFT Market Research: Will Ethereum and Polygon Emerge as the Future Winners?
NFTs are now everywhere, but which blockchain is best for developing NFTs?
Navigating Web3 tides with focused insightsWritten by: Rekt Fencer
Compiled by: TechFlow
NFTs are everywhere now, but have you ever wondered which blockchain is best suited for NFT development? Let's dive into the NFT markets across different blockchains.
This article will discuss:
- Ethereum
- Polygon
- BNBChain
- Solana
- Flow
- Bitcoin
Starting from January 1st, on Ethereum we can observe:
• An increase in total NFT sales volume;
• A rise in daily trading volume (mainly due to the Blur airdrop);
• A significant drop in the number of unique traders;
NFTs on Ethereum are the gold standard—blue-chip collections have stood the test of time and maintained stable demand. But why isn't Ethereum the perfect blockchain for NFTs?
Here are some drawbacks of Ethereum:
• High transaction fees
• Slow network speed
• High barrier to entry (Ethereum NFTs are typically more expensive than those on other blockchains, making them unaffordable for newcomers).
This is precisely why alternative blockchains have emerged.
Polygon is a reliable and cost-effective Layer 2 solution:
• Nearly zero transaction fees;
• No upfront costs for NFT creation;
• Fast transactions;
Some statistics about the Polygon NFT ecosystem:
• $MATIC trading volume hit an all-time high;
• OpenSea is the leading marketplace;
• The number of NFT transactions continues to grow;
Blue-chip NFT collections on Polygon:
• Sandbox—the metaverse land platform;
• CollectTrump—the first NFT of Donald Trump;
Polygon is commonly used for minting OATs and POAPs. It’s also utilized by popular NFT games such as Aavegotchi and Polychainmonsters.
BNBChain is a cheaper alternative to Ethereum, offering low gas fees and fast transactions. However, the NFT market on BNBChain is dead—the total trading volume last month was less than $200 million.
Solana is an efficient and scalable blockchain. Many NFT enthusiasts appreciate its low fees and high TPS. This is why Solana still maintains high NFT trading volumes despite the FTX collapse.
Some blue-chip NFTs on Solana:
• DeGodsNFT ($4.2M);
• Y00tsNFT ($3.4M);
• Okaybears ($2.9M);
Despite still having some NFT degens, it appears that projects and users are leaving the chain. For example, DeGodsNFT and Y00tsNFT are migrating from Solana to Polygon, meaning Solana will soon lose its biggest blue-chip NFTs, and the NFT space there is gradually losing vitality.
Flow is a blockchain specifically designed for NFTs and gaming, created by Dapper Labs, and has gained attention through partnerships with major brands like the NBA, NFL, and Ticketmaster. The most popular NFT projects on Flow include NBA Top Shot, UFC Strike NFT, and NFL ALL DAY.
Take NBA Top Shot as an example:
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Its marketplace trading volume reached 20 million, with 1.5 million users and over $1 billion in total sales, while current daily trading volume is around $100,000.
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Although NBA Top Shot saw a surge in sales in mid-2021, activity subsequently dropped almost to zero.
Flow brought in a large number of non-crypto users into its NFT ecosystem, but failed to retain them by merely selling seemingly useless NFT sports collectibles. As a result, it lost most of its user base and ultimately fell into decline.
Currently, the hottest trend in the industry is Bitcoin NFTs, drawing increasing attention from the community. In just one month, the number of Ordinals inscriptions has exceeded 250,000. Each inscription can contain various content: images, text, or MP3s.
To be honest, I don't think the Bitcoin NFT craze will last long. I predict that in a few months, no one will be talking about these Ordinals anymore, so most Bitcoin NFTs will quickly go to zero.
In summary, NFT ecosystems on most blockchains are either already completely dead or heading toward death.
So my view is: only Ethereum and Polygon have a strong chance of developing and thriving in the near future.
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