NFT Market Declines in 2023, Yet Bitcoin and Solana NFTs Present Significant Opportunities (2024)

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NFT Market Declines in 2023, Yet Bitcoin and Solana NFTs Present Significant Opportunities? ›

In 2023, the NFT market experienced a decline, but Bitcoin and Solana NFTs showed significant growth opportunities. In 2023, the NFT market experienced a notable downturn in sales but witnessed a surge in transaction volumes, along with the significant rise of Bitcoin and Solana in the NFT space.

Global non-fungible token (NFT) sales experienced a decline this week, dropping 21% from the previous week. Across 21 unique blockchains, the total sales just surpassed the $100 million mark over the past seven days.

NFTs are poised to revolutionize various industries by 2024, offering new opportunities for digital ownership and interaction. Technological advancements, including AI and machine learning, are set to enhance the functionality and appeal of NFTs.

As one of the leading layer-one blockchains in the cryptocurrency industry, Solana is best known for its lightning-fast network speeds, throughput, and low transaction fees. While trading NFTs on Ethereum might cost the user between $20-$70 in gas fees, the same trade on Solana would cost less than a cent.

Solana's ability to match or even surpass Ethereum in these critical aspects of the blockchain economy indicates a robust and scalable infrastructure capable of handling significant transaction volumes, a crucial factor for its continued adoption and growth.

Beyond the crypto-specific factors, the NFT market's downturn was also deeply intertwined with broader economic conditions. The world witnessed a tightening economic scenario, with rising inflation and cost of living affecting disposable incomes globally.

Another key factor that is contributing to the decline in NFT values is the lack of intrinsic value in many digital assets. Unlike real collectables or artworks, which have tangible properties, NFTs derive their value entirely from digital ownership.

The global NFT market cap today is $69.16 Billion, a -0.98% change in the last 24 hours.

According to Dizon, there are several pros to investing in NFTs: They have diverse applications, they offer a proof of ownership and they are easy to access through improved platforms. However, some of the cons, she added, include their volatility, their liquidity issues and the legal ambiguity around them.

Solana security

Solana's security approach combines Proof-of-Stake (PoS) with Proof-of-History (PoH), enabling high throughput and low latency. While this architecture allows Solana to process a large volume of transactions quickly, it relies on a smaller network of validators compared to Bitcoin.

What are the disadvantages of Solana? ›

Con: Stability

Since early 2022, Solana has struggled with several major network outages. In February 2023, the Solana network was down for nearly 20 straight hours. As recently as February 2024, the Solana network was down for five hours.

More user interaction with the platform leads to increased transactions and network usage, driving demand for SOL and driving its price higher.

Future Solana (SOL) upgrades could elevate the cryptocurrency to $260 in the near term. It has the potential to rise to $3,000 by 2030 and reach over $6,000 by 2050.

In a drastic flip, Solana failed to close the weekly trade on a bullish note as the token experienced a major bearish action. The falling wedge in which the SOL price is trading has been extending without any deviation, suggesting a lesser intensity of bulls and bears in recent times.

The Solana price prediction from CoinPedia suggests that Solana price could reach a maximum level of $200 per SOL in 2024. By 2025, Solana's price could add another $50, bringing it to $250 each SOL. Longer term, the digital asset could reach as high as $672.

Ethereum's NFT market still has a long road to recovery ahead. Heading into 2024, the next cycle for Ethereum's NFT ecosystem will likely be driven by advanced NFT trading platforms like Blur and Blast incentivizing trading activity with airdrops.

The global NFT market cap today is $72.85 Billion, a -0.04% change in the last 24 hours.

The market for NFTs, recorded in blockchain platforms and marketplaces, reportedly reached $41bn in 2021, declining to around $21bn at the end of 2022, before losing an estimated 95% of its value in 2023.

"Are NFTs Still a Thing?" The answer is yes. The NFT industry went from a recovery mode to a strong market revive in 2024. Tokenization has supported the growth and development of business models and markets, not just reviving them but also increasing interest in these commodities.