In 2020, NFT’s market blew up and the trading volume skyrocketed 57 percent increasing the worth of the industry to up to $100 million. Developers were designing NFT platforms in surprising and innovative ways. However, after a year, the initial NFT hype saw a downward trajectory and after a lot of speculation and ups and downs, the NFT market has settled. Now, experts believe that the NFT market is evolving and it may lead to a more stable and diverse NFT market.
Solana, a big name in the crypto space has its own NFT marketplace, and Tensor, an NFT trading platform launched earlier this year on Solana NFT marketplace is taking over Magic Eden in trading volume on the Solana network. Let’s look at the numbers.
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Tensor Surpasses Magic Eden, But…
As per the analytics platform TIEXO, Tensor surpassed Magic Eden with an NFT trading volume of more than $1 million, which is approx. double of Magic Eden’s trading volume.
This shows that Tensor contributes approx. 60 percent of Solana’s NFT Marketplace, meanwhile Magic Eden’s contribution has shrunk under 30 percent. However, Magic Eden still has more unique wallet users as compared to Tensor. To put it into numbers, Tensor has 86 thousand unique wallet users meanwhile Magic Eden has 116 thousand unique wallet users. Magic Eden is ahead of Tensor in terms of engagement rate as well with 70 percent against Tensor’s 52 percent.
Tensor traders trade with higher volumes, while Magic Eden has more casual NFT buyers.
Becoming Solana’s NFT leader
Tensor’s Co-founder, Ilia Moisejevs says that it was not an easy journey building Tensor and drawing NFT traders. In the beginning, the platform didn’t scale and the team had to reach to top traders via DM to convince them to try their product. A lot of them rejected the idea, but some tried it and that’s how they got their first 50 users.
Tensor delivered many products to appeal and to reach its audience. They listened to user feedback and kept on improving the product and after thirty iterations, they got the final product.
Tensor’s is deeply intertwined with the Solana ecosystem. Even when Solana’s native token’s (SOL) price fell they didn’t migrate to other ecosystems. The co-founder also believes that for Tensor to succeed Solana has to be massively successful. He also believes that Solana has the potential to bring crypto and NFTs to the people.
Similar to Blur, the Ethereum NFT trading platform, Tensor also began as a trading platform for professional traders. Gradually, it moved toward retail traders as well. Community members speculate that Tensor will introduce airdrops similar to Blur in the future.
Even traders such as Retired Chad Dev and Weekend Whale have had positive experiences with Tensor. The platform has an intuitive user interface and is familiar with centralized exchanges. For this reason, it has become a preferred choice of many traders when it comes to NFT trading. Solana is not perfect and it has its own challenges, however, many loyal traders have found a ‘home’ in Tensor for NFT trading.
Final Thoughts
Tensor surpassing Magic Eden highlights the dynamic nature of the NFT space. While Tensor emerges as a dominant force, Magic Eden’s larger audience with higher engagement rates shows the NFT community’s diverse dynamics. Lastly, as Tensor continues to integrate with Solana and evolve, it shows the expansion of the NFT market and promises opportunities for NFT enthusiasts in the near future.
FAQs
1. Is Solana used for NFTs?
Yes, Solana has an NFT marketplace, providing access to digital collectibles. NFT enthusiasts can easily navigate the platform and buy and sell NFTs from huge collections and artists.
2. What is the difference between Ethereum NFT and Solana’s NFT?
Solana boasts lower gas fees, quicker transaction speeds, and a more eco-friendly profile compared to Ethereum. While Ethereum grants access to a broader market and sees NFTs selling for higher average prices, its network is recognized for greater security than Solana.
3. How much does it cost to launch Solana’s NFT collection?
There are a lot of factors that affect the cost of creating an NFT on Solana such as several tokens, project complexity, and the selected Token Development Company. However, Solana is the most cost-effective of all the platforms. On average, it will cost you around USD 90 to launch a Solana NFT collection. This makes it one of the most budget-friendly options in the market.
Barry Lachey is a Professional Editor at Zobuz. Previously He has also worked for Moxly Sports and Network Resources “Joe Joe.” he is a graduate of the Kings College at the University of Thames Valley London. You can reach Barry via email or by phone.
