The vigorous growth of NFTs as an asset class is a bubble that refuses to burst – at least for now – but NFT markets continue to attract investor attention, especially with opportunities that seem untapped by industry leaders. In recent weeks, more attention has been paid to the NFT capabilities of the Solana ecosystem.
On Friday, Justin Kahn’s crypto playground Fractal, which hosts Solana-based NFTs, raised $35 million led by Paradigm and Multicoin with participation from Andreessen Horowitz, Animoca, Coinbase and Solana Labs. Magic Eden, Solana’s most popular in-house NFT store, has raised a $27 million round led by Paradigm with additional funding from companies like Sequoia.
Offering consumers low transaction fees and high speeds, Solana has become one of the bold success stories of the blockchain ecosystem in recent years as the network has attracted developers and investors. Many players see the Layer 1 (L1) variant as the best hub for NFT efforts, which has often been a major bottleneck for the Ethereum network resulting in higher network costs and latency.
“We launched Solana because we felt it was the best user experience for users, gamers and gaming companies,” Kahn said in an interview with gaming-updates.
All eyes were on new investments in Solana NFT startups as well as new ventures from established giants. Last week OpenC share The tweet states that support for the Solana blockchain will be added in the coming weeks.
OpenSea continues to be the center of the lion’s share of total NFT sales. Total transaction volume has reached sky-high heights, leaving the company valued at $13.3 billion, but the startup still has a lot to offer to generate widespread enthusiasm for the technology among mainstream consumers. While the platform’s transaction volume has exceeded $2.5 billion over the past 30 days, those funds have been spread across approximately 450,000 unique portfolios — a significant year-over-year increase for the platform, but also an indication of how islandy the NFT market is. this point. Meanwhile, Magic Eden’s total volume is only a fraction of OpenSea’s $41 million, up from $2.5 billion the previous month, but Magic Eden’s 95,000 active sellers during that time are part of a platform to increase user interest despite a much lower average transaction.
One of the biggest open questions will be how management plays a role in the NFT Marketplace’s current spam challenges.
In recent years, OpenSea has relied heavily on the costs associated with securing NFTs via Ethereum as a means of driving its market. For the past year they have been trying to cut costs by offering a more streamlined process called “lazy mining”, but in January they had to rein in the feature when they discovered that 80 percent of NFTs use NFT technology. Spam or fake. or acts of plagiarism. Solana, with its feed-in pricing, will exacerbate some of these problems for larger markets and force them to create more robust content filters, perhaps leaving room for startups with more well-defined niches or more aggressive management strategies.