Research Summary
The report analyzes the recovery of the NFT market, led by Solana, with Ethereum expected to follow in 2024. It highlights the role of advanced NFT trading platforms like Blur and Tensor in driving market recovery and the shift in marketplace concentration. The report also compares the performance of Ethereum and Solana in terms of NFT trading volume and active users.
Key Takeaways
Solana’s Rapid Recovery in NFT Market
- Solana’s NFT Market Growth: Solana’s NFT trading activity is recovering 2.6 times faster than Ethereum’s. As of January 8, 2024, Solana’s weekly NFT trading volume represents 25% of the total NFT trading volume.
Ethereum’s Dominance and Decline in Active Users
- Ethereum’s NFT Market Dominance: In 2023, Ethereum facilitated over 90% of the total weekly NFT trading volume for 67% of the year. However, the number of active Ethereum NFT users declined by 73% in the same year.
Shift in NFT Marketplace Concentration
- Blur’s Market Dominance: Blur, an advanced NFT trading platform, dominated 67% of the total NFT trading volume on Ethereum in 2023, overtaking OpenSea, which represented only 29% of the total Ethereum NFT volume.
Advanced NFT Trading Platforms Driving Market Recovery
- Role of Advanced Trading Platforms: Advanced NFT trading platforms like Blur and Tensor are driving the recovery of the NFT market. These platforms incentivize trading activity with airdrops, attracting more users and liquidity.
Comparison of Ethereum and Solana’s NFT Market
- Ethereum vs Solana: Despite Ethereum’s dominance in the NFT sector in 2023, Solana’s NFT trading volume and active user count have been increasing rapidly. Solana now has more daily active NFT users than Ethereum.
Actionable Insights
- Monitor Advanced Trading Platforms: Blur and Tensor are driving the NFT market recovery. Monitoring their performance and strategies can provide insights into the future trends of the NFT market.
- Assess Ethereum’s NFT Market Recovery: Despite a decline in active users, Ethereum still dominates the NFT market. Assessing its recovery rate and strategies can provide valuable insights.
- Track Solana’s NFT Market Growth: Solana’s NFT market is growing rapidly. Tracking its growth can help understand the factors contributing to its success and the potential for other platforms to replicate it.
