In December of 2023, Solana's NFT market surpassed Ethereum's in monthly sales volume for the first time ever, reaching $366.5 million compared to Ethereum's $353.2 million. This growth in Solana's NFT market is attributed to a significant increase in unique traders and transactions. Additionally, Solana started 2024 positively, with Crypto.com introducing new trading pairs based on the Solana blockchain. However, the rise in popularity has also led to increased scam activities, which can be seen with the launch of the LessFnGas (LFG) token, where scammers set up fake websites to phish users, causing big losses for many people, including the co-founder of Nest wallet, Bill Lou.
Solana’s Monthly NFT Sales Tops ETH’s For The First Time
Solana's NFT market outperformed Ethereum in monthly sales volume for the first time ever in December of 2023. According to data from the analytics platform CryptoSlam, Solana's NFT sales reached approximately $366.5 million in December, surpassing Ethereum's $353.2 million.
This feat becomes even more impressive considering the fact that CryptoSlam did not count suspicious trades or "wash trading." CryptoSlam's data, which focuses on "organic" sales figures, removed about $381 million worth of Ethereum sales and only $10.1 million from Solana's tally.
The surge in Solana's NFT market also reflects a broader engagement within its ecosystem as a whole. In December, Solana witnessed approximately double the number of unique buyers and sellers compared to Ethereum, with a significantly higher total number of NFT transactions. Specifically, Solana reported about 218,000 sellers and 279,000 buyers across nearly 6.6 million NFT transactions, dwarfing Ethereum's 114,000 sellers and over 143,000 buyers involved in 698,000 transactions.
This massive growth in Solana's NFT market can not only be attributed to the jump in SOL’s price. While the increased value of Solana may have contributed to the spike in NFT sales, the tripling in unique traders and a sixfold increase in monthly NFT transactions suggest a much deeper shift. Interestingly, the average NFT sale price on Solana decreased from about $74 in November to under $56 in December, suggesting that the surge in users and transactions might be driven by factors beyond just the asset's value. This could include the growing hype around Solana and the excitement surrounding specific NFT projects on its platform, like Tensorians and Mad Lads, which saw significant trading volumes in December as well.
In contrast, Ethereum's NFT market remained relatively stable, with its December sales volume nearly mirroring that of November. The top NFT projects on Ethereum, like the Bored Ape Yacht Club and Pudgy Penguins, continued to attract trading, but they certainly did not match the explosive growth seen on Solana. Meanwhile, CryptoSlam data indicated that Bitcoin Ordinals generated more trading volume than Ethereum and Solana combined, with $881.2 million worth across over 493,000 transactions..
Overall, December 2023 showed the crypto community that the NFT landscape is shifting and Solana is emerging as a formidable competitor to Ethereum in NFT sales volume.
More Good News For Solana in 2024
Solana kicked off 2024 on a high note as the Singapore-based cryptocurrency exchange, Crypto.com, recently expanded its offerings by introducing four new trading pairs that are based on the Solana blockchain. The newly listed trading pairs on Crypto.com include HNT/SOL, ORCA/SOL, JTO/SOL, and MNDE/SOL.
HNT is the native token of Helium , a blockchain network that focuses on connecting Internet of Things (IoT) devices. Helium has gained a lot of attention, especially after its migration to the Solana blockchain in 2023.
ORCA/SOL involves Orca, which is an Automated Market Maker (AMM)-based decentralized exchange (DEX) built on Solana. Orca has been recognized for its user-friendly interface and efficient transaction processing, making it a popular choice among users of decentralized finance (DeFi) services.
JTO, another token in the new listings, is the native cryptocurrency of Jito, a DeFi platform that operates on the Solana blockchain. Jito has been carving out a niche for itself in the competitive DeFi space, offering unique solutions and services to its users.
Lastly, MNDE is the native cryptocurrency of Marinade Finance, a noncustodial liquid-staking protocol that is also part of the Solana ecosystem. Marinade Finance has been instrumental in providing users with flexible staking options, which, in turn, enhances the overall utility of the Solana blockchain.
The inclusion of these Solana-based trading pairs on a major platform like Crypto.com is proof of the growing hype and adoption of Solana among the cryptocurrency community. It not only increases the visibility and accessibility of Solana's native token, SOL, but also shines a spotlight on some of the other exciting projects within the ecosystem itself.
Scammers are Taking Advantage of the Solana Hype
The recent launch of the LessFnGas (LFG) token on New Year's Day was a very exciting development for many, especially for those invested in the Solana ecosystem. This marketing campaign is a direct nod to Solana's advocates, who frequently point out the blockchain's relatively low transaction fees compared to Ethereum's often costly gas fees.
The LFG project specifically targets Ethereum users who have experienced the pinch of high gas fees, having spent at least 2 ether (ETH). In a strategic move to attract this audience, the project offers LFG tokens through an airdrop to holders of eligible wallets. These users are invited to specify a Solana address to receive the new tokens.
On the day of the launch, the project reported a very positive response, with over 45,000 wallets having claimed the LFG token. However, the launch of LFG has not been without its challenges. Anatoly Yakovenko, the co-founder of Solana, promoted the airdrop on social media, which unfortunately also attracted the attention of scammers.
The criminals quickly set up fake versions of the legitimate domain, aiming to phish unsuspecting claimants. The risks associated with these scams unfortunately became evident when Bill Lou, co-founder of Nest wallet, reported that he fell victim to the scam on social media. Lou linked to a Medium post that led him to inadvertently sign a transaction, resulting in the draining of 52 stETH, worth about $125,000. Moreover, it also seems like each official post about the LFG airdrop on various platforms has been met with replies from scam accounts.
