Happy Tuesday. It’s Matt here.
I’m so stoked for another week of NFT discoveries. Yeah, the benchmark indexes took another nosedive yesterday. Are you tired of seeing them turn red yet? I sure am.
Thankfully, I’m still stoked about the big event we alerted you to last week: the debut of Yuga Labs’ Otherside.
It was a first of its kind for this mega NFT project entering the metaverse. And as with any firsts, there were some glitches that made us wonder … is there a better way to launch a virtual land sale?
Let’s take an inside look at what went right with the $300 million sale and what could be improved on next time.
How Yuga Labs Crashed Ethereum
When Yuga Labs decided to sell virtual land plots in its Otherside corner of the metaverse, it used its own ApeCoin cryptocurrency.
ApeCoin is an Ethereum-backed digital currency. That means that volume and activity related to ApeCoin has an impact on the Ethereum network.
And this past weekend, that impact went through the roof. According to an article by Cointelegraph, roughly 55,000 virtual land NFTs, called “Otherdeeds,” were sold on Sunday.
The problem was that Ethereum wasn’t ready to handle that. On Ethereum, fees tend to scale up depending on how much traffic there is on the network.
Otherdeeds’ popularity sent gas fees through the roof. Some users reportedly paid up to $14,000 in gas fees. Can you imagine making a trade with that kind of commission fee?
Is Solana a Better Alternative?
This is why I think the SOL blockchain might be a better alternative to Ethereum. It’s a carbon neutral platform that could bring gas fees back to earth.
New ventures tend to expose inefficiencies in the market, and right now gas fees based on Bitcoin and Ethereum are both terribly inefficient.
Thankfully, we might have a proof of concept already. A relatively new NFT project called Okay Bears is Solana-backed, and it’s doing really well in the markets.
According to a February 2022 article from Yahoo, Solana has the capacity to for 65,000 transactions per second (TPS) with fees that average $0.00025 per transaction.
The NFT and Crypto world is still growing, and that means twists and turns will come. As with any experiment, the answers you get can alter the next steps you take.
In the case of high volume transactions, we think it’s time that a more efficient blockchain step up to the task.
My mentor, Tim Sykes, is all about Solana. And he shares exactly why, what, and how he thinks Solana will impact the NFT community in his NFT Club. The blockchain is due for a fresh disruption and Tim Sykes is readying the best strategies for when that shift happens. For the latest alpha on crypto and NFTs, join us in Tim Sykes’ NFT Club!