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3 Reasons Why Solana Could Overtake Ethereum in NFTs: Magic Eden




  • Magic Eden has grown from 0 to $1.54 billion in platform sales in less than a year.
  • Right now the platform primarily uses solana to mint NFTs, for three main reasons.
  • The founders believe that solana provides better technical solutions for NFTs than ethereum.

In less than a year, Magic Eden has become the second largest NFT marketplace in the world. Just last month the company raised $159.5 million from tech titans like Sequoia and Greylock, giving it a $1.6 billion valuation. 

A big part of the platform’s success can be attributed to its prescient bet on solana, a blockchain that has quickly gained popularity over the last few years and eaten into ethereum’s lead in the NFT market.

Insider recently spoke with Magic Eden co-founders Zhuojie ‘Rex’ Zhou and Sidney Zhang about their thoughts on solana, and why they are so bullish about its future. 

Betting big on solana

Magic Eden was founded in September of 2021, right in the middle of last year’s NFT boom.

The platform currently only allows for solana NFTs — or NFTs that are minted on the solana blockchain. That is in stark contrast from its biggest competitor Opensea, which only accepted ethereum until April 2022. 

But it appears that the choice has worked well for Magic Eden. Since its inception less than a year ago, Magic Eden has scaled up to over 837,000 users, has two million more monthly transactions than OpenSea, and has an exchange volume of over $1.54 billion.

Today, Magic Eden controls virtually the entire solana NFT marketplace. Roughly 97% of all solana NFT transactions and 92.4% of solana gaming NFT trades take place on Magic Eden.

While they’re reaping the rewards today, it wasn’t the easiest choice for Magic Eden’s founders to pick solana over ethereum when the company was founded. Most of the flagship NFT collections, like Cryptopunks and the Bored Ape Yacht Club, use ethereum, and prominent NFT artists like Beeple have only sold their artwork on the ethereum network.

However, solana has been quickly catching up with its crypto competitor. 

“At the end of February ethereum represented 91% of all NFT trades and solana was 6% or so. Today ethereum represents 66% of the number of trades and solana NFTs represent 14% of the total adjustable entity market,” Zhang told Insider. 

He and Zhou have three specific reasons why they see solana continuing to cut into ethereum’s dominance in the NFT market. 

3 ways solana is better than ethereum

Super fast layer-1 solution

The first reason Zhou and Zhang bet on solana is the speed at which it conducts transactions.

“The language was like a super secure mindset and the proof of history consensus algorithms, it supports 400 milliseconds block time, and 3000 TPS (transactions per second), which is kind of unreal for any other blockchain, especially a L-one blockchain,” Zhou said.

To put that in perspective, ethereum has a block time of 10 to 12 seconds — or 2,400% to 2,900% slower than solana’s — and roughly 10 transactions per second. Cardano, another solana competitor, has a block time of 10 seconds and 250 TPS.

Speed is essential for a blockchain network to scale. To put it in perspective, Visa regularly processes 1,700 transactions per second, and claims to be capable of processing up to 24,000 TPS. The faster solana can conduct transactions, the stronger the network and the more appealing it is to companies looking to adopt a blockchain strategy for their business.

Low transaction fees

Zhou said solana’s low gas fees are another reason to be optimistic about the blockchain’s future. Gas fees refer to the payment required to conduct a transaction on any given blockchain.

One of the biggest criticisms of ethereum is its high gas fees, which is one of the main reasons investors began looking for alternatives like solana. 

“I think it’s pretty obvious, people understand, it’s really low cost to interact with the chain. Which means, if you take a look at the stats of Magic Eden versus other marketplaces, then in terms of number of transactions we have way more on-chain interactions than any other blockchain NFT marketplaces,” Zhou said.

Not long ago, when the Bored Ape Yacht Club launched its metaverse, Otherside, over $176 million in gas fees were burnt. Individuals reported that they spent over $14,000 in gas fees to mint four NFTs. For perspective, the gas fee to mint an NFT on Magic Eden is less than a penny.

Polished consumer experience

Finally, Zhou said that the experience of using solana is more “snappy and polished” than ethereum. 

Caseem Ward, a solana NFT holder and advisor with Light Node Media, concurred with this assessment.

“It’s always a smooth and frictionless process acquiring solana NFTs during a sale,” Ward said. “Degenerate Ape Academy was the first SOL NFT I minted, and it was such a pleasure. I paid less than a cent to mint and received my Degen Ape instantly, escaping an exorbitant gas fee and long wait time for my transaction to confirm on the blockchain.

Ward continued: “Solana doesn’t have gas wars, a phenomenon where an anticipated NFT project has thousands of buyers trying to secure their spot on the blockchain in order to mint during a public sale resulting in gas fees driven up to sky-high levels. This is in stark contrast to what I’ve experienced minting ethereum NFTs.”

During the Otherside auction, the ethereum blockchain actually experienced an outage due to how much demand there was to purchase a metaverse plot. This resulted in many potential investors missing their chance to invest.

It is worth noting, however, that solana itself has had multiple outages as well.

The future of solana looks bright

One of the hindrances preventing solana from taking over the NFT market is the lack of artists who are building on the solana blockchain network right now. 

Many creators choose to list their NFTs on the ethereum blockchain simply because there is more money in the ethereum system than solana’s. In 2021, the total NFT market was over $41 billion, while the solana NFT market was less than $1 billion. But Zhang says that the status quo is quickly changing.

“There are a lot of artists, very famous artists that are choosing to drop on solana that probably wouldn’t have chosen to drop on solana in October of last year,” Zhang said. 

He also noted that major celebrities like Steve Aoki, Michael Jordan, and Shaquille O’Neil have all recently experimented with solana. 

Rising interest among celebrities and artists in utilizing the solana blockchain only validates Magic Eden’s bet on the network, and both Zhang and Zhou are confident that solana’s popularity will continue to grow from here.

“Ethereum is the ecosystem that really took off last year,” Zhang said. But while ethereum may have dominated the NFT market last year, Zhang is focused on the future, not the past. 

Zhang succinctly summarized his perspective: “Don’t just look at where the puck is today, look at where the puck is going.” For Magic Eden, the puck is heading in solana’s direction.

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Tulip Protocol Officially Integrates Chainlink on Solana Mainnet




Tulip Protocol Officially Integrates Chainlink on Solana Mainnet

Today, Tulip Protocol made the announcement that they have integrated Chainlink Price Feeds in order to better secure their yield aggregating platform that is running on the Solana mainnet. The team had previously stated their intention to integrate Chainlink Price Feeds, and at this point, the connection has been completely put into action. Chainlink is the premier decentralized oracle network in the world, safeguarding tens of billions of dollars in smart contracts. It has diversified its offerings across other blockchains, notably Solana, Fantom, Polygon, BNB Chain, and others.

In a recent blog post, the team behind the Tulip Protocol explained that they had integrated Chainlink to provide users with more confidence that leveraged positions will be liquidated equitably using extremely accurate price data and that the protocol will continue to be completely collateralized at all times.

According to Tomasz Wojewoda, Head of Global Sales at Chainlink Labs:

“We’re pleased that Tulip Protocol has integrated Chainlink Price Feeds on Solana, helping secure its yield aggregation protocol with highly robust, decentralized market data. With the high-throughput performance of Solana and the strong security guarantees of the Chainlink Network, Tulip Protocol is able to empower users with a performant and secure platform.”

Tulip Protocol Seeks To Take Advantage Of Solana

Tulip Protocol brings together lenders who receive a return on their deposits and borrowers who are interested in gaining access to leverage. Users who initiate leverage positions are responsible for maintaining a loan-to-value (LTV) ratio that has been previously established. The Tulip Protocol then uses the asset price data that is provided by Chainlink Price Feeds to verify that this ratio is accurate. If the value of the collateral falls below the threshold that was established by the protocol, then their position will be immediately liquidated to assist in guaranteeing that the lenders will be repaid.

Tulip Protocol intends to capitalize on Solana by giving users the ability to more regularly reinvest their income and grow their assets without having to pay exorbitant amounts of gas expenses. Chainlink oracles can now be natively integrated on Solana, making it possible for Solana-based applications to benefit from enhanced levels of security and transparency. Yesterday, OpenOcean made the announcement that they would be integrating Chainlink Price Feeds in order to help secure the limited order functionality on many chains. These chains include Avalanche, Ethereum, Polygon, Fantom, and BNB Chain.

According to Senx, Co-Founder of Tulip Protocol:

 “We’re excited to be using Chainlink Price Feeds on Solana to help secure our yield aggregation platform. By leveraging the most secure and reliable on-chain data available, we’re able to provide our lenders and borrowers with greater assurances that liquidations are based on accurate price data, and the protocol will maintain a healthy loan-to-value ratio through all market conditions.” 

Allowing Stakers To Benefit From Higher APYs

Natives of the blockchain as well as newcomers to the technology are beginning to understand that decentralization does not necessarily equate to a secure platform. Given that Web3 services are currently disclosing their susceptibilities to attacks from both within and outside the network, further initiatives should be undertaken to improve the safety of user assets. Fortunately, a growing number of blockchain businesses are beginning to add various levels of security to their services in order to solidify the trust of their existing customers and attract additional investors in the near and distant future.

Tulip Protocol is the very first yield aggregation platform to be built on Solana, and it features auto-compounding vault techniques. The dApp was developed to make use of Solana’s blockchain, which has a low cost and high efficiency, hence enabling the vault techniques to compound frequently. Stakeholders are able to reap the benefits of greater APYs as a result, without the need for active management.

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Is your SOL safe? What we know about the Solana hack




On this week’s episode of “The Market Report,” Cointelegraph’s resident experts discuss the latest updates concerning the recent Solana (SOL) hack.

To kick things off, we broke down the latest news in the markets this week:

Bitcoin realized price bands form key resistance as bulls lose $24K, significant whale activity between $22,000 and $24,800 adds to the complexity of the current spot market setup. Bitcoin (BTC) consolidated lower on Aug. 9 after familiar resistance preserved a multi-month trading range. When will we finally break out of this price range and make the move towards $30K?

Institutions flocking to Ethereum for 7 straight weeks as Merge nears: Report, “Greater clarity” around the Merge has driven institutional inflows into Ethereum products, according to a CoinShares report. Is the ETH merge finally around the corner and will it bring new all time highs to ETH or has the price already been factored into the current price?

Circle freezes blacklisted Tornado Cash smart contract addresses, Crypto data aggregator Dune Analytics said that, on Monday, Circle, the issuer of the USD Coin (USDC) stablecoin, froze over 75,000 USDC worth of funds linked to the 44 Tornado Cash addresses sanctioned by the U.S. Office of Foreign Assets Control’s Specially Designated Nationals and Blocked Persons (SDN) list. Could this mark the end for Tornado Cash or is there a way they can redeem themselves?

Next up is a new segment called “Quick Crypto Tips,” which aims to give newcomers to the crypto industry quick and easy tips to get the most out of their experience. This week’s tip: Have some funds ready to buy further downturns.

Market expert Marcel Pechman then carefully examines the Bitcoin and Ether (ETH) markets. Are the current market conditions bullish or bearish? What is the outlook for the next few months? Pechman is here to break it down. The experts also go over some markets news to bring you up to date on the latest regarding the top two cryptocurrencies.

After Marcel’s market analysis, our resident experts discuss whether your SOL is safe and the latest updates on the Solana hack. We also discuss why the network has been victim to so many hacks and downtimes. What exactly do these exploits mean for the Solana platform and if you should be worried.

Lastly, we’ve got insights from Cointelegraph Markets Pro, a platform for crypto traders who want to stay one step ahead of the market. The analysts use Cointelegraph Markets Pro to identify two altcoins that stood out this week: Radicle’s RAD and DigiByte’s DGB.

Do you have a question about a coin or topic not covered here? Don’t worry. Join the YouTube chat room, and write your questions there. The person with the most interesting comment or question will be given a 1 month free subscription to markets Pro worth $100!

The Market Report streams live every Tuesday at 12:00 pm ET (4:00 pm UTC), so be sure to head on over to Cointelegraph’s YouTube page and smash those like and subscribe buttons for all our future videos and updates.

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Web3-Based ZepetoX to Build on Solana




Web3-Based ZepetoX to Build on Solana

Singapore, Singapore , Aug. 09, 2022 (GLOBE NEWSWIRE) — Today, the ZepetoX team (ZTX, announced its foray into the web3 space, sharing its vision to build an open world that empowers creators and communities to build, play and earn.

ZepetoX is the crypto metaverse initiative jointly incubated by ZEPETO – Asia’s largest metaverse platform with over 320 million registered users – alongside leading global blockchain organizations including Jump Crypto.

As the sole blockchain project comprehensively backed by ZEPETO, ZepetoX will have exclusive ties to ZEPETO in terms of IP including technological, design, and content assets as well as bridges to facilitate user onboarding between the two platforms. ZepetoX’s blockchain development efforts will be advised by Jump.

“ZepetoX is our official venture into the blockchain industry. We feel that web3 opportunities should be advanced through a crypto-native approach, which is why we are excited to have Jump as a contributor to developing a new platform that would have exclusive connections to ZEPETO. Overall, we believe that ZepetoX can build the ideal web3 platform to not only bring blockchain to our existing users but also to expand our footprint in the blockchain space through various disruptive initiatives,” said Daewook Kim, CEO of Naver Z – the operating entity of ZEPETO.

“We are excited to support ZepetoX’s efforts aimed at onboarding new audiences into the rapidly growing crypto space. ZEPETO’s expertise and technological know-hows accumulated over the past years from building an immersive social platform will serve as a springboard for ZepetoX,” said Saurabh Sharma, Partner at Jump Crypto.

Building on the Solana network, ZepetoX will offer a web-based 3D open world with varying levels of gamification integrated as well as opportunities for users to monetize via ownership of digital assets and social interaction. Ultimately, ZepetoX aims to empower self-expression through customizable avatars and lands that can be equipped with NFTs from a rich collection of assets created by diverse creators, DAOs, or communities.

“I am thrilled to see IP powerhouses like ZepetoX choosing to build their metaverse on Solana,” said Anatoly Yakovenko, Co-Founder of Solana. “Projects like ZepetoX create new pathways for onboarding millions of users to web3.”

“Our global team brings a depth of crypto native experiences and our goal is to build on the foundation of ZEPETO to spearhead the adoption of blockchain among metaverse users, developers, and creators,” said co-CEO of ZepetoX, Chris Chang.

In the coming months, ZepetoX will launch its first land sale. The lands will be tradable on the ZepetoX marketplace, which will feature a variety of different NFTs as the open world project evolves. Further details on the sale will be available on the ZepetoX website in the coming weeks.

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About ZepetoX: ZepetoX (ZTX) is a web3 company building an immersive content-driven platform for users to create, trade digital assets and enjoy social interaction. Founded in 2022, ZepetoX is the blockchain initiative of ZEPETO, widely regarded as the largest Asia-based metaverse platform boasting over 320 million lifetime users with over 2.5 billion virtual fashion items sold.



News Via KISS PR Crypto Press Release Distribution Media Contact

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