The Solana NFT sale reached a milestone when the price of SOL stopped at $100

According to data from CryptoSlam, Solana-based nonfungible tokens (NFTs) have reached a milestone, surpassing $5 billion in sales.

This surge in activity marks a turnaround for the Solana blockchain, which was struggling to gain traction in the NFT space a few months ago.

Solana ecosystem collapse

As of February 23rd, the cumulative sales volume for Solana-based NFTs reached $5,014,125,016, indicating the popularity of the layer-1 blockchain in the NFT marketplace. The network has a large user base with over 2.2 million buyers and 1.6 million sellers, facilitating approximately 43 million transactions.

Solana's NFT sell-off contrasts with a tepid performance in the months leading up to November 2023. Monthly sales hovered around $40 million, showing little signs of growth. However, this trend has reversed after October 2023.

In the year In November 2023, Solana's NFT sales soared to nearly $82 million, a 192 percent increase from the previous month. That pace continued through December, with Solana-based NFTs recording around $365 million in monthly sales, just shy of Ethereum's $353.2 million.

Solana's increase in NFT sales coincides with a bullish trend for Solana's token, which has seen a price increase since December 2023. The current trading price stands at $102.73, representing a 302% increase over the past year based on Coingecko data.

Although sales were down slightly in January, Solana NFTs still recorded over $239 million in sales. Since February, monthly sales have reached $161 million. These consecutive months of strong performance have seen Solana NFTs exceed $1 billion in sales in the past nine months alone.

Analysts are predicting the fall of Ethereum.

The increase in sales and transaction activity can be attributed to the widespread enthusiasm around the Solana ecosystem and the buzz around certain projects that offer incentives such as airdrops and additional benefits.

For example, Tensorians, an NFT initiative affiliated with popular Solana marketplace Tensor, saw a total of $28 million in trades in December. Mad Lads recorded $24.5 million in sales during the same period.

Analysts at JPMorgan, led by Nikolaos Panigirtzoglou, foresee Ethereum's market share in the NFT space shrinking, as competitors such as Solana gain ground. Citing issues of Ethereum congestion and exorbitant gas fees, analysts point to a significant migration of NFT applications to alternative blockchains, with Solana being the primary beneficiary.