In this video, we compare Solana and Ethereum from their underlying technology to their place in the NFT space.

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WHAT CHAINS CAN I TRADE NFTs ON?

Blockchains are just the underlying technology, and technically there can be NFTs created on any of them.

The 2 most popular ones by far are Ethereum and Solana, but there are some in Near and Cardano as well which I haven’t explored.

Even though there may be NFT ecosystems on other chains, I’ll be focusing purely on the top 2 because I don’t think the others have enough volume for us to trade reliably yet.

WHAT'S THE DIFFERENCE IN BLOCKCHAIN TECHNOLOGY BETWEEN ETH & SOL?

Eth is considered the OG in the space and is the second largest crypto only behind bitcoin.

On the other hand, Sol as a whole is a lot more smaller with a market cap 10% of what Eth has.

Currently, Eth still uses the PoW mechanism which is why you here of people mining Eth with their hardware.

Sol uses a PoS mechanism, so any Sol you stake will contribute to the ecosystems success.

Because of this, the first major thing to take note of as investors are the transaction fees.

Sol has extremely low fees per transaction at less than $0.01, while Eth fees can be very high depending on the transaction and congestion of network.

Sending Eth costs the least and can be $5, but I’ve seen situations where people have to pay over $2000 just in fees.

Recently, BAYC dropped another mint which was of course extremely hyped and because of the congestion, gas fees rose astronomically and based on blockchain data, people spent over $180m on gas fees alone for this mint. which is something you would never see in Solana.

Another difference is that Eth has much lower TPS at 10-15, vs sol which ranges between 1.5k-2k meaning that transactions are also much faster than Eth.

Do note that Eth 2.0 is looking to resolve this, but idk when it’ll launch and it keeps getting delayed.

Everything points towards Sol being better on paper, but of course the fact that Eth is much more established, has a larger market cap, and has not had any downtime that I can remember means we cant rule it out.

ETH vs SOL NFTs

Just like its blockchain Eth NFTs are also much larger than Sol.

The biggest NFT on eth is BAYC has a price of 96 Eth while the largest Sol project right now is Degods at 272 sol or under 7 Eth.

In terms of market cap, the projects on Eth also blow Sol projects out of the water. Historically, Eth projects were also much more popular which meant there were more users, more transactions, and more volume.

Very recently though, Sol NFT’s actually managed to flip eth in terms of users and transactions.

However, $ volume of Eth NFTs are still larger. In terms of what the NFTs do, Sol projects generally have a lot more utility compared to eth due to the lower fees and quicker transactions.

Most eth projects out there are for building brands and communities, while there are a ton of sol projects that have actual utility like building tech companies and even payment solutions in the real world.

When you hear this you may think that utility is so much better than brand or hype, but that’s not entirely the case.

Branding is still extremely popular in NFT’s, and many people want to hold them to just to flex or feel like they belong to a community of people.

WHERE SHOULD BEGINNERS START?

Based off of all the reasons above, my pick for newcomers would be to 100% go for Sol.

I may be a bit biased because I'm solely investing in that ecosystem but the fact that Sol NFTs have better utility, are starting to build brand, and have much lower entry barriers justifies my decision.

And the last point is especially true for newcomers who may not want to put so much money.

You’d need about 1 Eth to start in NFT’s there which is around $2000, whereas you can easily start with 10 sol which is only $500.

Also, you won’t have to pay so much in fees meaning you can buy and sell NFTs more often without having to think of it.

MY NFT JOURNEY

I started my NFT journey in Eth due to the popularity but I quickly found out about Sol and their thriving ecosystem.

Since making the switch, I completely abandoned my Eth NFTs and I don’t think I’d go back anytime soon.

I know of people who have spent millions of dollars just on gas fees and that’s not my kind of thing.

You can probably make a lot more money in Eth due to the amount of dollars circulating there, but I’d say Sol is a much better bet especially for newcomers.

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