QUICK POINTS
-Solana has had its first million-dollar NFT sale for Degen
-Solana has seen rapid growth in its NFT sales due to lower transaction fees
The NFT space is here to stay. This point has been made abundantly clear with the stellar summer that NFTs have enjoyed this year. Lately, there has been a slight slump in sales on Opensea and of NFT in general, but this does not indicate the end of NFT as a whole. They are indeed here to stay. There are many opportunities and tons of great projects on the horizon. Most of the NFT are purchased with Ethereum and sometimes those gas fees can cost just as much as minting the original offering.
Solana is of course known for being much cheaper than Ethereum when it comes to transactions and as developers are starting to be attracted more projects are made on the Solana blockchain. Solana has recently seen success with a particular NFT on the blockchain: Degenerate Apes.
With the Degenerate Ape Academy, the Solana blockchain has seen its first milliondollar NFT sale. The Degenerate Ape NFT sold for an amazing 5,908 SOL ( approx. 1.1 million) last Saturday. The NFT was purchased by the blockchain advisory firm Moonrock Capital. Moonrock purchased Degen Ape #7225, a scarred zombie ape draped n bling and a halo, all while chomping on some poor schmucks’ brain. The ape that was purchased is one of the rarest in the collection (13th rarest to be exact.) There are more apes on the Solana blockchain that have been close to or at 1 million but this ape seems to be the first sale worth more than that amount.
This indeed will lead to a big shift in the way that NFTs are handled across the blockchain ecosystem. NFTs have mostly been minted and sold on the Ethereum blockchain, this is where the majority of the value and interest is. The problem with Ethereum is the incredibly high gas fees, these fees have led to many investors and developers looking for other avenues and other platforms such as Solana, Cardano, and Tezos.
There are many investors that have decided that the gas fees on the Ethereum blockchain make any purchase or investment more of a loss than an investment. KSICRYPTO a YouTuber that now boxes tweeted for his followers to “GOML ( Get on my level) “ when he told them he decided to move to Solana. Other major celebrities such as Steve Harvey also make their purchases on the Solana network. Mr. Harvey who bought a Solana Monkey Business NFT made the item his avatar on his personal Twitter account.
The building blocks for NFT on the Solana network have shown constant growth recently. There are launches of multiple new marketplaces such as Digital Eyes and SolSea, which are trying to stay afloat and handle the increasing number of NFT mints. Another aspect is the Aurora launch, which has seen projects begin to make use of the Candy Machine of Metaplex, thus making things much easier for all.
It should be noted that there is some dilution in value among the projects since there are so many on Solana. On the other side of the spectrum, there are many projects that have failed to sell out or are selling below the price intended. The price of SOL has been rising and has even seen growth from $100 to $200 in a bit over a week. SOL is now one of the top 10 coins by market cap and thus NFT projects have lowered their min prices to stay affordable. Some projects are giving them away so cheap you may think it is a scam. LitJesus is giving its NFT away and Trippy Bunny Tribe has donated all of its profits to the American Foundation for Suicide Prevention.
The content of this article, analysis, report or webpage is not investment advice and does not constitute any offer or solicitation to offer or recommend any investment product. This content is for general purposes only and does not take into account your individual needs, investment objectives and specific financial circumstances. The author may hold digital assets mention in this report.