Is Cardano’s NFT Performance Better than Ethereum, Solana, and Polygon?
Cardano, a blockchain platform that introduced smart contracts through its Alonzo upgrade in September 2021, has been gaining momentum in the NFT market. Initially, Cardano struggled to attract users who preferred other blockchains like Ethereum, Solana, and Polygon for trading their JPEG collections.
However, Cardano has now surpassed several blockchain platforms such as Arbitrum, Flow, Ronin, Avalanche, Fantom, Algorand, Cronos, and Tezos in terms of transaction volume in the past month. Although the gap between Ethereum, Solana, and Polygon appears quite significant for Cardano at the time of writing, it only differs by a few million compared to BNB Chain.
The number of NFT buyers on Cardano has decreased by approximately 17% in the past month. In fact, this figure has dropped from 2.8 thousand to 2.1 thousand on a quarterly basis. On the other hand, the number of sellers has increased from 86 to 123. According to a recent report by Messari, daily NFT transactions decreased by 27% compared to the previous quarter, and the number of daily unique buyers decreased by 23%. This decrease in activity is not only due to a lesser number of unique buyers but also due to fewer average transactions per buyer. Meanwhile, the number of daily sellers has increased by 43%.
ImmutableX, a blockchain-based NFT platform, has been providing fierce competition to Cardano. Messari’s report highlights that Cardano was the fifth largest network by secondary NFT sales volume with USD 40.5 million in Q4 2022. On some days, Cardano generated more secondary sales volume than Immutable X, ending Q4 as the fourth largest network by secondary sales volume with USD 56.7 million. However, Cardano’s secondary sales volume decreased by 18.6% to USD 35.8 million in Q1, while Immutable X increased by 18.7% to USD 66.3 million.
During the same period, the average secondary NFT sale price on Cardano was USD 85.84, significantly higher than competing NFT networks like Flow (USD 17.65) and WAX (USD 2.62). Due to this significant difference in the average sale price, Cardano is leading chains like Flow and WAX in the NFT sales volume rankings.
In conclusion, although Cardano’s NFT market has experienced a slight dip in the number of buyers, it has managed to compete with several leading blockchain platforms in terms of transaction volume and sales revenue. As the NFT market continues to evolve, it will be interesting to see how Cardano adapts and continues to improve its offerings to attract more users.
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