Interest in NFTs has slowed since its peak in 2021 and 2022, with volume shrinking and fewer projects hitting the market. However, Bitcoin (BTC) and Solana (SOL) have risen as the preferred home for new NFT deployments.
In particular, three out of every four NFT launches in 2023 took place on either Bitcoin or Solana. It has captivated previous enthusiasts with its ordinal inscriptions but has also sparked controversy in the Bitcoin community.
Notably, Bitcoin NFTs are unique because the media is physically stored on the blockchain rather than central databases. Most NFT chains are simply a hash identifier linked to the requested media, usually an image hosted by centralized services. Elon Musk recently shared his opinion about these mechanisms on X (formerly Twitter).
Meanwhile, Solana has gained space due to lower fees and better network performance than its competitors. Solana’s ecosystem has grown in 2023, consolidating its dominance in the sector alongside Bitcoin, with 75% of all NFT deployments last year, according to Developer of Electric Capital Company a report 2023.
Ethereum NFT deployments are at record lows
On the other hand, Ethereum (ETH) has significantly lost its previous dominance. Ethereum’s NFT deployments fell to historic lows in the same year that Bitcoin and Solana shined.
all in all, Electrical capital It reported 14,560 NFT deployments across the three blockchains at the end of 2023 alone. This movement indicates a shift in direction and the potential for renewed interest in this technology.
Interestingly, the move to improved infrastructures that provide local decentralized media hosting or more efficient transactions could have led to this spark. Investors are now awaiting further developments and insights into NFT trading and use cases to boost demand and value.
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