SOLANA SUMMER EDITION! NFT's RIPPING 20X's + SOLANA NFT ALPHA! COULD THESE BE THE NEXT BLUECHIP!
Do not miss this weeks edition as we explore the Solana NFT Ecosystem.
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The information contained in this NFT Scoop newsletter or podcast is not financial advice, it is provided for educational, informational, and entertainment purposes only.
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NFT’s can be highly illiquid markets, causing sharp drops in prices due to changes in narratives and trends.
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Weekly Market Update
An up and down week across the board whilst uncertainty continues. However there are some positive takes from the previous 7 days. The percentage of projects with increased floors continued its alarming dip reaching a low of 7% of projects. However over the course of the weekend bullishness kicked in and the number of projects with increased floors soared to 79%. With Ethereum showing less volatile movement over the last 7 days we expect to see solid profit opportunities present themselves. Further turbulence does however remain a possibility.
Breaking News
Spotify is the latest global company to announce their plans involving NFT’s. Their initial plan involves artists being able to promote their existing 3rd party NFT offerings via their profile.
Germany plans to eliminate all taxes on Bitcoin and other digital assets, as long as they are long-term capital gains.
The No Mo Soho Hotel in New York has become the first hotel in the United States to offer reservations via NFTs.
Weekly Winner
As per their bio, Degen Toonz is “8888 degenerate TOONZ that double as a membership to an exclusive metaverse community with the power to build it from the ground up.”
The project launched during the end of the bull run in the middle of February 2022 at a mint price of 0.08.
The project was maintaining a steady floor price in the 0.4 - 0.6 ETH region with the floor price sitting at 0.7ETH 7 days ago.
Since then, the project has experienced a strong pump of 3x to an all time high of 2.2 ETH.
There are many reasons for this, from the buzzing community who back this project to the hilt to some big players such as Farokh making large sweeps.
All in all a really successful week for all those connected with the project.
Weekly Loser
A weekly loser for the 2nd time, this time its for a different reason……..not just the new trends previously communicated regarding the potential end of 3D PFP.
We previously advised that the floor had recovered ever so slightly to the right side of 1ETH however with the project yet to reveal we would expect another dip.
Well, the project finally revealed and we are now seeing the expected dip. The floor has dropped by over 50% and it is no surprise to see sales in the 0.6ETH region.
A real unfortunate situation for long time grinders who had visions of a 10ETH floor.
We don’t envisage this project returning to the right side of 1ETH.
Market Direction: Solana Edition
This week’s newsletter section will be dedicated to Solana. What is happening can’t be ignored & as a newsletter that reports on the NFT market, it’s our duty to report on where the attention is flowing.
Is it Solana Summer?
Well as expected the NFT market needed a change to gather interest from new investors, whilst we welcome the development of new innovations & utilities from NFTs on the Ethereum Chain, it can’t be ignored what is happening over in the wild wild world of Solana. Blue Chip NFTs in the Solana ecosystem have been gathering serious attention over the past few weeks most notably the PFP project OKAY Bears which has rocketed from 11.1/SOL Floor price on the 24th of April to a Floor of now 239/SOL. It should definitely be noted that the price of $SOL has dropped since the 24th of April from $101 to now $58. That being said if we denominate the OKAY Bear’s growth in just 22 days in Dollar value they have rallied from $1,121 to $13,862. I am sure we can agree, that regardless of the drop in $SOL price, it’s serious growth.
We think the new interest and volumes being witnessed in the Solana NFT Ecosystem can be attributed to firstly Opensea opening up the ability to list, buy & sell Solana based NFTs on the 6th of April, this has then drawn attention from investors who are used to spending 2-5+ ETH on NFTs to dip their toe in the Solana waters.. after all these new Solana NFT’s are perceived to be cheap by ETH NFT OG’s right?
Secondly, as new liquidity and investment begin to pour into Solana NFTs, Floor prices rise, which of course attracts more attention and subsequently new investors. We have been saying for the past few weeks, that the ETH NFT market has become top-heavy with the majority of gains being made on blue-chip NFTs or those who were lucky enough to secure a raffled whitelist spot for a highly anticipated project (MoonBirds for example). Combining this with high gas fees, this has naturally caused a lot of NFT speculators to be priced out of the profitable end of the ETH market. Enter Solana NFTs, with project floor prices rising fast, and low gas fees, it’s the opportunity that the NFT speculators who were previously priced out were looking for. This has caused a recent cascade of new volume & users trading Solana NFTs. But what we can see is this isn’t just on Opensea, It’s happening even more so on Magic Eden. Magic Eden is Solana's largest NFT marketplace.
As you can see from the above data Magic Eden is trending higher than Opensea in all stats. The number of transactions in 24 hours is the most staggering, being over 5 times higher on Magic Eden than Opensea.
This shows there are a lot of flipping opportunities within Solana at present, whilst some investors are purchasing NFTs for the long haul, there are certainly investors using the increase in volume and low gas fees to flip multiple NFTs at high frequency. An additional confirmation that this could well indeed be Solana summer, is that we are seeing new projects deliver a poor mint experience, upset the community who then cause FUD, and then still begin to rally hard in price hours after the mint has concluded. In the more mature ETH market, this would almost certainly cause a project to fail. an example of this happening on Solana just yesterday was ‘The Northman’
Another notable project which has ripped a 20x in the last 48 hours is Reptilian Renegade. On the 15th of May, the project had a floor of 2 SOL and rocketed up to 40 SOL at the time of writing. This type of activity and floor movement in recent times is unprecedented and hasn’t been seen since summer 2021 in the ETH NFT market.
Whilst the volatility, volume, and attention on the Solana NFT market is exciting, this does not come without risk. If you thought ETH NFTs were the wild west, this is a whole different ball game. In most of the projects, that have ripped in the last 48 hours, we can’t say this due to amazing Art, utility, or innovation, from the outset it looks like pure euphoria and speculation. With euphoria and speculation bring scammers & rug pulls. While people are seeing gains left right & center, emotion & FOMO kicks in the majority of cases and individuals are less likely to do their research when investing in a new project leaving them wide open to scams. It is clear that there is more opportunity at present to make gains flipping NFTs on Solana than ETH, though from what we have seen so far the Solana marketplace is fast, and volatile with a number of pumps & dumps happening, tread with caution and always take profits.
Whilst it has been previously thought by the majority of the Ethereum community, that the art throughout the Solana ecosystem is of less quality & aesthetic than ETH NFTs, we think this is certainly about to change. During the great NFT run seen in 2021, projects launching onto the ETH market were definitely of a lower quality than they are today. As more attention, volume & interest grows for the Solana ecosystem, it will attract better teams and the quality of projects will improve over time. Whilst Degods, Solana Monkey Business & OKAY bears are taking the top blue-chip spot, the SOL ecosystem is ripe for disruption for new projects to take the lead.
Solana Mid to Blue Chips
If you are looking to enter the Solana ecosystem then Magic Eden is the marketplace of choice and in order to interact with the marketplace, you will need to use a Phantom Wallet.
The internal narratives & meta in the Solana NFT ecosystem are still forming and as such we will be looking to continue to analyze the development of the market. 0x1stclass who has joined NFTscoop to support our analysis of the Solana Ecosystem & upcoming projects. Some upcoming projects he has recommended to research are:
Solana Alpha
Suteki
Suteki Twitter
Jikan Studios
Jikan Studios Twitter
The Vincenia
Vincenia Twitter
This week’s Solana edition was written by @TheBarbell_ Founder of NFT Scoop
Thanks for reading! See you on Friday!
Solana Summer!