Solana vs Ethereum NFTs – Revealed: Which is Better

The two most dominant cryptocurrencies when it comes to buying NFTs are Solana and Ethereum.

Although these are the two breakout cryptos leading the way for others to try to follow, such as Polygon MATIC, the dominance may be too much for anyone else to properly enter the space.

Even though Solana and Ethereum are the cryptocurrencies to buy in to for NFT purchases, there are very distinct differences between them, as well as benefits and cons for each.

Solana NFTs work on a Proof of Stake method, whereas Ethereum NFTs currently work on a Proof of Woke method. Ethereum NFTs hold a large proportion of the popular NFT share but are more expensive in gas fees to mint due to the Proof of Work method.

In this guide we’ll look at both cryptocurrency options for NFT minting, buying and selling, as well as the pros and cons for each and which of the two cryptos are best to go all in on!

Solana NFTs

Solana NFTs

Growth in Solana NFTs has exploded in the past 12-18 months.

Mainly driven by extremely low gas fees, due to a time-based Proof of Stake method – as well as capable of managing over 700,000 transactions a second, compared with 25 on Ethereum.

In fact, Solana can manage more transactions per second than Visa!

Solana has an uphill battle, which is the sheer might and dominance of the OpenSea marketplace.

Things though could be set to change.

Solanart, the rival Solana NFT driven marketplace platform to Ethereum’s OpenSea marketplace platform, has in January 2022 had a major investment valuing the business at $1.3billion.

This is because there are a group of very knowledgeable investors who have seen Solana’s capabilities of fast, low priced transaction validation and can see how this could be a major player in the NFT space.

What are Solana NFTs?

Solana NFTs are simply standard NFTs that are available to mint (be created) in the Solana cryptocurrency.

Although OpenSea is the largest NFT collection holder and marketplace, it does not list Solana minted NFTs.

Therefore, all Solana priced NFTs need to list on compatible NFT marketplace, of which Solanart is the largest.

For an NFT collection listing on Solana has the benefit of lower fees (so lower barriers to entry for NFT investment) which can mean a larger number of sales – but OpenSea is still the most recognized and consider the more exclusive marketplace for better NFT collections.

Whether an NFT is minted by Solana or Ethereum it is still a classed as an NFT – the only difference is the crypto used to mint the NFT, the wallet used to store the NFT, and the marketplace used to list and sell the NFT.

Solana Gas Fees

The average Solana gas fee is equal to $0.001. This means 1,000 NFTs could be minted on the Solana Proof of Stake network for $1. Gas fees are considerably cheaper on Solana than Ethereum due to the Proof of Stake vs Proof of Work method, as well as thousands more transactions per second.

The incredibly cheap fee is one of the biggest reasons investors are moving from Ethereum NFTs to Solana NFTs.

The average Ethereum NFT gas fees are $116.

Using these costs, it means it is possible to mint 116,000 NFTs on Solana for the same gas fees as just 1 NFT mint on Ethereum!

Ethereum NFTs

Ethereum NFTs

Ethereum became the first crypto to become popular for minting NFTs.

It’s use on the very popular OpenSea platform saw it become the number one converted crypto to NFT transaction basis on the cryptocurrency network.

OpenSea were the first NFT platform, and as seen in past trends and niches that the first established player can usually become the most dominant in the market.

The most popular NFT collections are held on OpenSea. Collections such as Bored Ape Yacht Club, which is seeing sales on average of $300,000 an NFT – as well as Crypto Punks which has seen three of its NFT collection sell for more than $5million each!

To own one of these collections is a status symbol of wealth.

As of now there have not been many famous NFT collections taking off to this level on Solanart. Sales are happening but these are not as publicized.

New investors hitting the market from stories of Punks and Apes are being instantly drawn to OpenSea and Ethereum.

It’s only once the gas fee issue of the Ethereum network is known do they start to venture over to the Solana and Solanart platform and network.

Therefore, at this moment in time many NFT collections are launching on the OpenSea platform because it is where the higher number of users are, but they are competing against a larger number of other collections.

What are Ethereum NFTs?

Ethereum NFTs, are just like any other NFT, except they are paid for in Ethereum and usually displayed on the OpenSea Marketplace.

Both Solana NFTs and Ethereum NFTs are NFTs of the same description – it just depends on the crypto used to purchase them, or more accurately the crypto chosen by the NFT collection to purchase in.

Can you make money on Ethereum NFTs?

Yes, but there are many more NFT projects that create a loss for investors than profits.

Every day there are up to 20-30 new NFT collections minting in Ethereum with anywhere between 3,333 to 10,000 NFTs in each collection.

This could mean up to 300,000 new Ethereum NFTs hitting the market every day.

With each Ethereum NFT costing an average of $365.98 (for mint plus gas fee) there are not enough investors or money in the market to see all NFTs to sell out.

An investor can only make a return on their investment if the collection has more demand than supply. This means NFT collections should be invested in to wisely.

As an example, we tracked the NFT launches of 17 Ethereum NFTs. We checked back in 4 weeks later and 16 of the 17 NFTs had a floor price of lower the mint price – meaning the average NFT holder would have lost money.

Only 1 of the 17 NFT collections has a higher floor price than mint fee, and since it launched it has seen a 100% increase.

This one NFT Collection had a public mint price of 0.08 ETH. As of today, the floor price is 0.16 ETH, and the NFTs are selling at this price too.

The 0.08 ETH does not include gas fee of course.

The average Ethereum gas fee is 0.044 ETH – meaning the average investment, including gas fee, would have been 0.124 ETH.

This still represents a 0.036 ETH ROI per minted NFT – which is equal to a $90 profit based on today’s Ethereum price.

So, just 1 in 17 NFTs minted in Ethereum has seen a return on investment in four weeks, and that return is equal to 27.9% increase of the original investment.

Trying to find the 1 in 17 though is tough and becoming harder each day.

Ethereum Gas Fees

The high gas fees on the Ethereum network are having a noticeable affect to the number of investors continue to mint Ethereum NFTs.

We calculated that over a 3-month period, the average mint price was just over $116 (as shown here).

Compare this to an average Solana mint price of $0.001, and you can see why investors are trying to move to Solana.

Ethereum 2.0

Ethereum will be moving to Ethereum 2.0 in summer 2022.

This move transitions Ethereum from environmentally unfriendly Proof of Work transactions to much more environmentally friendly Proof of Stake transactions.

It will also mean many more transactions can be carried out in a second, which will allow it to compete with up-and-coming NFT crypto networks such as Solana.

How Ethereum 2.0 will affect gas fees is still an open question, with arguments for a similar price – and counter arguments that will see a reduction – still be argued daily online.

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