Even an outsider of the crypto world can’t look past the outstanding development of NFT projects. The growth of decentralized finance (DeFi) plays a significant role in further strengthening the growth and strength of NFTs in the future.
NFTs are unique and limited in nature, which make them incredibly useful not only for the crypto market but also for a large number of individuals and industries.
The digitized assets have left an impact on art, film, entertainment, sports, and many more. NFT supporters can be art creators, art collectors or people who need art products such as logos, digital paintings.
2021 Was the Year of the NFT!
NFT tokens gained popularity after receiving support from the metaverse and celebrities. A variety of different blockchain platforms that host these tokens have since emerged to support the NFT market. Solana is regarded as one of the top options currently.
This year, Solana has led a fund of $5M for any creators on the Solana ecosystem. Solana’s interest in NFTs is not just a fad, the top Ethereum-killer has demonstrated a serious investment strategy regarding this sector.
The latest remarks of Solana’s co-founder, on the other hand, reinforce the platform’s long-held belief in NFTs.
Anatoly Yakovenko, Solana’s co-founder, shared his thoughts on NFTs in a recent interview with Business Insider.
The 10-year technical and operational expert believes that NFTs have built primarily the functional concept of social networks in the future. In other words, NFTs show the presentations of different potential look and approach of social revolution – a concrete example that social experts, creators and those enthusiasts can look for.
The co-founder also highlighted the important role of NFTs in eradicating external involvement.
“I think these are the early starts of true web social networks that do not rely on ads for monetization, that don’t rely on Google or Facebook to function…They are purely these digital communities that can monetize/self-monetize from their own content without the need of any of these external poison marketplaces.”
Despite a number of issues that hinder NFTs to go further in its goal of mass-adoption (inappropriate transaction fees, seamless ability, and other related issues), the market for NFTs is gradually expanding and developing in the future.
Although NFTs were initially powered and developed on the Ethereum blockchain, with popular NFT names such as CryptoPunk, Erock, and others fetching hundreds of thousands of dollars, there are now no limitation of blockchains.
NFTs are now being developed on a variety of blockchains. It is mostly because the process of buying and selling NFTs has become more difficult for NFT enthusiasts who have limited financial resources while the gas fee is painful.
A Very New Market
Retail investors have been largely barred from trading promising small-cap stocks before they are listed on centralized exchanges due to exorbitant transaction fees.
The same threat exists in the NFT space at the moment, as NFT marketplaces such as OpenSea charge users exorbitant fees just to list and delist their NFTs on their platforms
The issue of high gas fees on Ethereum has pushed people away. Since the hype of NFTs, the majority of NFTs have been created and sold on the Ethereum blockchain.
However, with rising gas prices, many investors are turning to other platforms, such as Tezos, Solana, and others, to experiment with high scalability and low transaction fees. As a result, we are seeing a surge in adoption on these blockchains.
The Solana blockchain ecosystem is making significant steps forward in the evolution of NFTs. On September 11, the company Moonrock Capital paid 5,980 SOL for one of Degenerate Ape Academy’s NFTs, which was worth $1.1 million at that time.
Indeed, there have been numerous NFT sales on Solana, with sales potentially exceeding $1 million. Degen Ape #1674, for example, sells for 7,000 SOL. The sale, however, has been the first sale generating more than $1 million at the time of purchase.
Some Solana NFT marketplaces include: