Cardano NFTs: Gaining Momentum in the Market
Over the last few years, the Non-Fungible Token (NFT) market has grown to become a billion-dollar industry. However, it seems like the sector has not reached its peak, as SkyQuest Technology predicted that the market value could surpass $122 billion by 2028.
Two undeniable contributors to the current market level are the Ethereum [ETH] blockchain and Solana [SOL]. However, these are not the only ones that have had significant input into the ecosystem.
Cardano [ADA] NFTs have also had a tremendous impact on the sector. DappRadar, in October 2022, reported that the Cardano NFTs had become the third-biggest protocol in the ecosystem.
At that time, Cardano had just completed its much-anticipated Vasil upgrade. The upgrade, which was meant to enhance block latency speed and efficiency on the blockchain, propelled an increase in Unique Active Wallets (UAW) on the blockchain. The report noted,
“The Cardano marketplace JPG Store had a 13.66% growth in the number of unique active wallets in the last 30 days. Moreover, the NFT marketplace saw a 40% increase in trading volume, reaching $11.2 million.”
This metric shows the number of distinct addresses interacting with decentralized applications (dApps) under a protocol. In turn, this led to the NFT volume crossing $19 million within 30 days of the period.
Cardano NFTs: The Journey to Relevance
Cardano, known for its scalability and sustainability, entered the NFT space with CardanoKidz being the first collection. Although this collection started in a rookie way, as there was no real utility, it could still sell out using the ADA native token standard.
Though several projects followed, Cardano has still not been able to flip Ethereum and Solana, the two prominent platforms in the NFT market.
Ethereum has long been the dominant player in the NFT space. However, its network congestion and high gas fees have caused some users to explore alternative platforms. Solana, on the other hand, has gained attention for its fast and low-cost transactions.
However, Cardano’s foray into NFTs brings its own unique advantages, such as its focus on sustainability and the promise of interoperability. But it doesn’t just end there as here are three other unique features of Cardano NFTs:
- Cardano NFTs can be created without the need for smart contracts.
- Since the blockchain is divided into the settlement and computational layers, fees can be very minimal.
- Cardano NFTs allow a bunch of transfers of assets with multiple destinations but only one transaction fee.
Today’s worth isn’t yesterday’s value. However, it remains to be seen if these features can help Cardano NFTs outperform Ethereum and Solana and reshape the NFT landscape. But surely, their entry certainly adds more diversity and competition to the market.