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Solana's NFT market share grows vs Ethereum

In a new market report, Binance says the NFT sector had a "tough" quarter.

By Luc Vesters
• 3 min read
Solana's NFT market share grows vs Ethereum

In a new market report says Binance that the NFT sector has had a tough quarter. Slumping trading volumes and waning demand are eroding the popularity of the non-fungible token market. Ethereum lost share, while Solana closed the gap.

NFTs in crisis

According to Binance, NFT sales in Q3 fell 73 percent from the previous quarter. Trading volume and the number of NFT buyers have cratered. And yet, since the end of Q2, a "slight uptick" among investors has been observed.

There have been more profitable times for traders. Binance says the NFT 500 index fell about 28 percent in Q3, and NFT prices almost hit a historic low. This development "coincides with the overall drop in activity in this space," according to Binance.

Still, there"'"s a small glimmer of hope: "Throughout Q3, the number of transactions was higher than in 2021," transaction volume picked up in September after a weak summer.

Solana comes closer to Ethereum

There"'"s an exciting development happening in the NFT world right now. Ethereum, by far the largest NFT distributor, lost 16 percentage points of market share from Q2. Meanwhile, Solana gained 13 percentage points on the market, according to Binance.

Although Ethereum still holds 65 percent market share, "Solana's NFT sales are accelerating," the report says. Binance notes the market has shifted from a monopoly to an oligopoly. The Ethereum-based trading platform OpenSea remains the market leader, but Solana-based NFT marketplace Magic Eden is grabbing more and more market share.

Trends in the NFT market

The uneven market has left more traces on some NFTs than others. Especially gaming-related NFTs, whose share of total volume has fallen further in recent months. The same goes for metaverse tokens, which currently have few buyers. Measured by market cap, social NFTs, including those from CryptoPunks or the Bored Ape Yacht Club, still make up the majority—about 80 percent.

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