Last Updated on January 17, 2024 by newseditor
The use cases of NFTs are numerous. For artists, NFTs are an avenue to showcase and profit from their creations. For collectors, NFTs are a great investment channel. Many stakeholders in different industries have also shown how NFTs can be highly useful in areas like identification, fashion, gaming, and ticketing. Unsurprisingly, the popularity of NFTs has exploded in recent years. NFTs generated about $24.7 billion through organic trading volumes.
However, the existence of NFTs is primarily due to blockchain technology. NFTs are tokens with unique identifiers that help maintain rarity and determine ownership. These features are mainly powered by the immutability of blockchain technology. Thus, NFTs are minted on the blockchain, and NFT marketplaces are equally hosted on the blockchain.
Top Blockchains Hosting the Best NFT Marketplaces
Ethereum is the most popular blockchain within the NFT ecosystem. In fact, the concept of NFTs was introduced by the Ethereum blockchain. Since then, the blockchain has been intentional about implementing features that adequately support effective NFT minting. It deployed the ERC-1155 smart contract standard, which enabled wider NFT adoption through multiple token transfers. Today, Ethereum is responsible for a huge chunk of NFTs in the market. Popular NFT marketplaces hosted on the Ethereum blockchain include OpenSea, NiftyGateway, SuperRare, Rarible, and Floor.
Solana is yet another blockchain that provides extensive support to NFT marketplaces. One of Solana’s major competitive advantages is that, unlike Ethereum, it does not require high fees. The traffic on its blockchain network is also not as congested as the Ethereum blockchain. Solana utilizes stateless smart contracts, which make transactions much faster and cheaper. It also uses Proof of Stake mechanisms alongside proof of history. NFT marketplaces deployed on Solana follow suit. Some top NFT marketplaces deployed on Solana include Magic Eden, Hyberspace, SolSea, and Coral Cube.
Polygon was formerly known as Matic but officially changed its name in 2021. Like Solana, Polygon’s primary selling point is the reduction of processing time and transaction fees. The blockchain currently has a transaction speed of about 2.3 seconds. This amounts to about 26 transactions per minute. Moreso, Polygon does not require artists to pay upfront costs before minting new NFTs. This feature has also increased its popularity among artists. Some NFT marketplaces hosted on the Polygon blockchain include Element, NFTKey, NFTrade, and OpenSea.
The Cardano blockchain was launched in 2017, and it allows users to mint NFTs either on their own or through third-party services. While transaction fees on Cardano are generally lower than Ethereum’s, the fees are calculated based on the size of the relevant file. Thus, files with smaller sizes will attract lower transaction fees. Cardano hosts NFT marketplaces like CNFT, Cardano Cude, and Tokhun.
While the crypto market is still largely bearish, many investors consider NFTs as a viable investment opportunity. If you intend to venture into NFTs either as a creator or investor, the blockchain that hosts your preferred marketplace should be a major consideration.