In this video I explain why we might be hitting Solana NFT season soon.
To understand why Solana NFTs are having a good moment right now we have to first understand the problem that it is trying to solve. Ethereum is borderline broken at the moment with its terrible gas fees and slow transactions. The fact that NFTs have done so well on Ethereum so far should make us really bullish that people will try to get NFTs at any cost, but we’re now running up against the limits of what people will accept, even if you’re only buying fractions of high priced NFTs like cryptopunks, bored ape yacht club, 0n1 force or cool cats.
The next wave of NFT buyers will be significantly different from the current audience – they’ll be less tech savvy and will have less disposable income. They’ll be more sensitive to gas prices and they’re not playing with ETH that they bought at 1/100th of its current price (like a lot of current NFT buyers), they’re buying full price.
At the same time, we’re reaching an oversupply of new collections on ethereum. One of the best ways to stand out from the crowd when you’re selling a product is to lower prices, but we’re near the floor of how cheap NFTs on ethereum can be sold at because high gas prices make it pointless to buy/sell eth NFTs below a certain price point.
Moving to Solana is a great way to have your collection stand out because 1) the end consumer pays less even without you lowering your price because you remove gas
2) you can lower the price even further and still maintain the same revenue if you increase the collection size, and
3) you can create more innovative NFT projects that more real-time interaction or upgradeable parts due to the fast and cheap transactions on SOL.
And from the buyer’s perspective, new users will flock to Solana to escape gas fees and also because they’re attracted to these more innovative projects. We’re already seeing collections like Solana Monkey Business, Degenerate Ape Academy and Sollamas all selling well above their mint, and in some cases I believe they’re getting a premium just by being on Solana. As more users come into the market, these collections will benefit due to the lower supply of collections using SOL.
I also discuss a potential bear case and some criticisms to this theory, as well as my own buying strategy.
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1:27 Solana 101
2:25 the state of the NFT market
3:53 the next wave of NFT buyers
5:40 the bull case for Solana NFTs (important)
6:17 reason #1 for Solana NFT season
6:45 reason #2 for Solana NFT season
7:50 reason #3 for Solana NFT season
8:21 the types of Solana NFTs that will do well
11:21 the Solana bear case
14:02 my Solana NFT buying strategy
15:40 Solana Monkey Business