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Cardano NFTs – the next big thing?
Move over Ethereum and Solana, Cardano is taking NFT market share at a blistering pace. NFT volume on the alternative Layer 1 blockchain reached $8.9 million in the first week of May, already setting a new monthly record in the first week of the month. What is driving this interest in Cardano NFTs?
Image credit: Cardano Feed
What makes Cardano NFTs so popular?
Since Cardano’s launch in 2017, fans of the blockchain have applauded its low transaction costs, sustainability and speed. These qualities are a perfect combination for a thriving NFT market. Buyers can buy and sell NFTs quickly and without exorbitant gas fees.
Ethereum remains the most popular blockchain for NFT trading. However, it struggles with scalability. During the recent meme coin bull market, gas fees have steadily cost between $50-$100 per transaction. These high costs are a major obstacle for most market players and have many looking for an alternative.
Enter Cardano. The first NFT project, CardanoKidz, initially struggled due to Cardano’s lack of functional smart contracts. However, developers eventually figured out a solution and the project was successfully designed using the ADA token. Since then, many new projects have been launched on Cardano.
Some other popular Cardano projects include SpaceBudz, Clay Nation, and The Ape Society. These collections have helped Cardano maintain a firm hold on the sixth place for all-time NFT volume behind Ethereum, Ronin and Solana, Flow and Polygon. Much of this success also stems from Cardano’s recent Vasil upgrade.
The Vasil upgrade improved block delay speed and efficiency and helped catalyze an increase in Unique Active Wallets. The dominant NFT marketplace on Cardano JPG Store recorded a 13.6% growth in active wallets in the last 30 days after the upgrade. During that time, the marketplace’s volume also increased by 40% to $11.2 million.
Image credit: CardanoKidz
What makes Cardano NFTs different?
Cardano NFTs have three unique features compared to NFTs on other blockchains.
First, Cardano NFTs can be created without smart contracts. This capability helps reduce potential embossing errors and human error. As a result, creating NFTs on Cardano is safer and easier than creating NFTs on other chains.
Second, Cardano is divided into two layers, the settlement layer and the calculation layer. This architecture frees up network congestion. Transaction fees are subsequently much more affordable compared to fees on other blockchains.
Finally, developers built Cardano with the ability to batch transfer assets to multiple destinations with just one transaction fee. Project creators can distribute assets to many different wallets without hundreds or thousands of individual fees. This function reduces the project founders’ costs and has contributed to developing a vibrant NFT community.
What does the future hold for Cardano?
Cardano remains one of the fastest growing ecosystems in the Web3. Although at an early stage of development, Cardano has already created an atmosphere of innovation and excitement for developers, end users and projects. It seems like a good bet that Cardano NFTs will continue to flourish alongside the eco-friendly blockchain.
