After Bitcoin, Ethereum is the most popular cryptocurrency out there. After reaching a high of $ 4,400 in late 2021, Ethereum crashed again.
At the time of writing, the price is hovering around $ 2,000. However, by the end of the year, the price of Ethereum could reach $ 6,500.
NFT are also giants. And you know it for sure. Just look at last year when people spent over $ 41 billion on cryptocurrencies in NFT marketplaces.
So Ethereum is popular. NFT are popular. It is clear. But why is the Ethereum Network so popular for NFT projects? Let’s find out.
NFTs on Ethereum
When it comes to NFT, the Ethereum network seems to be a natural choice for investors at this point. Why? Because more than 95% of all NFT projects are on the Ethereum blockchain. Therefore.
Ethereum Blockchain dominates the NFT market in terms of buyers, sellers and transaction prices. In March 2022, for example, Ethereum formed:
- $ 1.8 billion from NFT sales
- Average price $ 3,000 per NFT
Advantages of the Ethereum network
Knowing these facts brings us to the following question: why is Ethereum the preferred blockchain for NFT projects?
The answer lies in three characteristic features of the Internet:
- Large, existing network: Ethereum Network is the second largest blockchain in the world. It is a huge advantage when you attract buyers and sellers to your NFT market.
- Wide range of features: Unlike other blockchains, Ethereum can do more than just store data. It can also execute smart contracts, which is essential for NFT trading.
- Continuous innovation: The community around Ethereum is always coming up with new ways to improve the network. This makes it attractive for NFT projects that want to be at the forefront.
ERC-721 tokens and smart contracts
One of the most important innovations coming from the Ethereum community is the ERC-721 symbol. This icon is a special type of icon that allows you to create unique NFTs.
ERC-721 tokens are stored on the Ethereum blockchain and can be traded on distributed exchanges. They are also used to create smart contracts that are actually self-executed contracts between two parties.
Smart contracts make it possible to buy, sell and trade with NFT. Without them, there would be no way to verify ownership of NFT or ensure that transactions proceed.
Ethereum NFTs vs Solana NFTs
Another blockchain that has become popular for NFT projects is Solana. This year alone, Solana NFT’s total sales exceeded the $ 1.5 billion mark.
Why is Solana so popular with NFT enthusiasts? Well, the blockchain network is known for its cheap, lightning fast business. Solana’s flexibility allows all trades to be as fast as 400 milliseconds per block.
Is it a threat to Ethereum? Not really. While it has many benefits, Solana is far from perfect. For example, in September 2021, it had gone three times. In June 2022, Solana’s value fell by 12% due to its 7th shutdown since the year began.
Security is also part of the reason why users choose Ethereum. Recently, hackers attacked the Solana bridge to the Ethereum bridge. The incident resulted in $ 320 million in stolen funds.
Ethereum is the most popular blockchain for NFT projects because it has a large, existing network and a wide range of features.
It is also a constant innovation, which is essential for NFT projects that want to be at the forefront. While Solana may offer several benefits, it is still not as secure or reliable as Ethereum.
Therefore, Ethereum is and will continue to be the preferred choice for NFT projects, apparently for years to come.
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