3 of the best cryptos for NFTs

In many ways, non-fungible tokens (NFTs) are the use case that launched cryptocurrency into the popular lexicon for the first time. Suddenly, individuals who were previously uninterested in the decentralized benefits of Ethereum (ETH 6.65%) bought packs of NBA Top Shot NFTs and celebrities from Justin Bieber to Neymar Jr. proudly displayed Bored Apes online.

While NFT sales have cooled as crypto prices have fallen in 2022, there are many signs that the NFT market is picking up again. For example, Flowbest known as the home of NBA Top Shot, just made waves when Meta platforms (NASDAQ: META) announced that Instagram will now support Flow NFTs. Here are three of the best cryptos for NFTs in an exciting and fluid time for the asset class.

Image source: Getty Images.

Ethereum: The Category Creator

Neil Patel (Ethereum): It is probably not a surprise to readers that Ethereum tops the list as the most famous and popular blockchain network and cryptocurrency for NFTs. Launched in 2015, it is the second oldest and second most valuable crypto after Bitcoin. As of the early afternoon of August 10, Ethereum had a market capitalization of $224 billion.

Being the first blockchain to introduce smart contracts has been a huge boon for Ethereum, whose original token, Ether, has returned an incredible 56,500% since its inception. Smart contracts are computer programs written into the blockchain that run when certain conditions are met between two parties. They introduce functionality, new features and applications to the blockchain, one of which is NFTs.

OpenSea, the largest NFT marketplace, was first launched on the Ethereum network. This means that when buyers wanted to buy NFTs from OpenSea, they had to first buy Ether, increasing the demand and value of Ethereum. While the numbers are down from their peak in May 2021, OpenSea still generated more than $500 million of NFT trading volume for Ethereum in the last 30 days.

Ethereum’s dominance in NFTs can also be demonstrated by looking at the top two collections, CryptoPunks and Bored Ape Yacht Club. Together, they have a collective value of almost 3 billion dollars. They are minted and sold on Ethereum’s blockchain, supporting the demand for Ether. And most recently, the luxury jewelry manufacturer Tiffany & Co. a NFT collection, called NFTiffs, on the Ethereum blockchain for CryptoPunks owners.

Ethereum has the most developers of any crypto working with it to advance the network and build apps for users, a positive sign for its outlook. And upcoming merger, which will increase Ethereum’s scalability, will make it even more attractive to NFT creators and collectors. As a result, it’s hard to see any other crypto surpassing Ethereum as the best for NFTs.

Solana: The rising star

RJ Fulton (Solana): The stranglehold that Ethereum has had over the NFT market may be changing. Although it still accounts for more than 80% of all NFT sales, other blockchains like it Solana (SUN 11.47%) fighting for market share. Compared to Ethereum, Solana offers incredibly fast speeds and lower fees, which NFT artists and collectors increasingly want.

Thanks to integrations with some of the most popular NFT marketplaces such as OpenSea and Rarible, Solana gained more exposure in the past year than all previous years combined. At one point this year, Solana did the unthinkable and surpassed Ethereum in NFT trading volume over a 24-hour period thanks to the release of the Trippin’ Ape Tribe collection back in May. It achieved another feat this year thanks to arguably the most popular Solana-based NFT project, Okay Bears. This collection of 10,000 uniquely designed profile pictures is the only non-Ethereum based project to crack the top 50 of all NFTs in total volume and was able to generate more trading volume in one day than all other Ethereum NFTs on some time in April last year.

Adding to its success, Meta Platforms announced in early 2022 that its social media platforms Facebook and Instagram would be adding NFTs to their networks, and Solana was one of the four blockchains chosen. Although the integration has not rolled out yet, once Meta reveals its NFT capabilities, Solana can further increase its presence with users worldwide as a viable alternative to Ethereum.

If current trends hold, Ethereum should continue to lose share of the NFT market. At one point in 2021, Ethereum accounted for 95% of all NFT sales, but now this figure has fallen to around 80%. With users looking for other options, blockchains like Solana have an opportunity to build a reputation as a formidable opponent to Ethereum.

Despite a brutal decline in NFT prices this year, the popularity of Solana NFTs has certainly grown, but thanks to some timely developments and news, they could grow even more. If you’re not interested in trying to figure out which profile picture NFT is going to blow up, but still want exposure to the increasingly diversified field of NFT blockchains, a position with Solana is a must.

Polygon: The upcoming dark horse

Michael Byrne (Polygon): What does Coca ColaReddit, Walt Disney and Meta platforms all have in common? All four have recently announced that they have chosen to collaborate with Polygon (MATIC 11.40%) on various NFT projects. While Ethereum is the 800 pound gorilla in the room and Solana may be a top contender, Polygon is an interesting dark horse building blue chip partnerships and gaining momentum. Thanks to its low fees, ability to scale, fast transaction times and climate-friendly profile, it is a natural partner for these blue chip companies looking to wade into the crypto space.

Walt Disney selected Polygon for its 2022 Disney Accelerator program, which is “a business development program designed to accelerate the growth of innovative companies from around the world.” Disney likely sees Polygon and their team as a good way for the company to explore leveraging its vast catalog of intellectual property for NFTs. Reddit also chose to create its new Collectibles Avatar NFT marketplace on Polygon. Reddit highlights that it chose Polygon because of its commitment to sustainability and because of its low transaction fees. The NFTs are designed by artists on Reddit and proceeds will support these Reddit users. Owners of the Reddit NFTs will be able to use the NFTs as their profile picture and will be licensed to use the NFTs on and off Reddit. Not to be outdone, Meta Platforms’ Instagram currently supports NFTs from the Ethereum, Polygon and Flow blockchains and enables users in over 100 countries to display NFTs on the platform.

It’s not just media empires and tech companies trying to make a splash in Web3 that are leveraging Polygon — Coca-Cola just used Polygon to help generative NFTs of Coca-Cola bottles to existing Coca-Cola NFT holders to celebrate the International Friendship Day.

Polygon may not have the marquee collections of Bored Apes or Okay Bears like Ethereum and Solana, but it’s hitting the ground running when it comes to corporate bonds and has a bright future ahead of it.

While the NFT market has been turbulent in 2022 as crypto prices have fallen, this is an exciting emerging asset class that is starting to make serious inroads into multiple industries, and these cryptos are three of the best ways to get involved.