Tuesday, March 21

Cryptocurrencies solana and avalanche join the NFT bandwagon

The NFT are gaining weight in the cryptoactive market, and their growth is causing cryptocurrencies sunshine and avalanche benefit from a new investment trend that until now almost unanimously capitalized on ether.

According to the data collected by the analysis house Delphi Digital, almost 450,000 digital wallets registered purchases of NFT during the month of January, the highest figure in history in terms of monthly transactions. In contrast, the month of December left a figure that was slightly less than 300,000, while in November it barely exceeded 200,000.

The average amount of these transactions, however, decreased during the month of January to settle at around 1,500 dollars, a figure significantly lower than the 2,500 dollars on average spent on NFT operations in November of last year.

Of these 400,000 digital wallets that they bought NFT in January, a maximum peak of 10,000 per day used the solana cryptocurrency to carry out these operations, a considerable increase from the less than 8,000 NFT purchases per day made with solana that marked the previous peak in September.

In the case of avalanche, meanwhile, the level of users continues at relatively low levels, not exceeding 500 operations per day at its peak, but the increase in the financial volume of these few operations is surprising, reaching a historical maximum of 5 million , which leaves an average price per transaction of about $10,000.

In comparison, the monetary volume reached by the more than 10,000 transactions per day made with solana remained at 10 million dollars, an average figure of 1,000 dollars per purchase that is closer to the average of all the operations of NFT made during the month of January.

NFTs conquer investors

The NFT They are gradually gaining ground among investors and increasing their popularity, having raised their total sales in 2021 to 25,000 million dollars, according to data offered by the market supervisor company, DappRadar.

Of these 25,000 million total registered in 2021, 11,600 were generated between October and December, the last quarter of the year being the most beneficial for the space of the NFT, which in the previous three months generated 10.7 billion dollars, and in the previous 6 months, only 2.5 billion dollars.

The quantitative leap, therefore, was obvious between the first and second half of 2021, when there was an explosion of the NFT that, today and according to the data from CoinMarketCap, has a total market capitalization of 23,593 million dollars.

The NFT, which up to now have asserted their differential value as artistic assets for the new digital age, have received a strong boost in recent weeks thanks to a promotional campaign carried out from Hollywood, where athletes like Shaquille O’Neal or artists like Eminem have entered the ecosystem with digital wallets They have up to $300,000 on their balance sheet.

The ether continues to impose its dominance

Faced with this strength of NFT, ether has clearly benefited from its position as the cornerstone of important exchange markets for this asset, such as OpenSea The Rarible.

Transferred to the financial market, these digital markets would be equated to the NYSE o al Nasdaq, and the ether would be the US dollar.

Moses Santos, digital asset expert Bitpanda Spain, explains that the network of Ethereum “remains the leader of the platforms to build smart contracts and decentralized apps”, given that the vast majority of DeFi (decentralized finance) is built on it, “despite the numerous competitors attributed to it.”

In this context of ether domain, the expert of bitpanda details that, as in DeFi, “the vast majority of NFTs are being built on the network Ethereum, although one of the biggest disadvantages is the cost of transactions”.

The opportunity of other networks and currencies

The expansion of interest in NFT, therefore, causes more space for other cryptocurrencies, and that is where both solana and avalanche have found their niche.

And it is that to combat this high cost in the aforementioned transactions, Santos explains that other platforms have emerged with much more affordable (and faster) transaction costs such as Solana, Polygon o Avalanche.

Santos points out, therefore, that the solana and avalanche cryptocurrencies stand out among their competitors in their category “for their revaluation in 2021.”

Despite this, the expert points out that, today, ether accounts for “20 percent of all the money in crypto”, and that, therefore, “blockchains such as Solana, Polygon, Avalanche, Cardano o Tezos They still have a lot of work to do to be considered a serious alternative to Ethereum in the NFT arena.”