Over the past 12 months, there has been fast-rising investor interest in Solana and Terra-related projects. Thus, causing their native coins (SOL and LUNA) to become among the top-ranked cryptos. The latest Coingecko data shows that LUNA and SOL are now ranked as the seventh and eighth cryptos, with a market cap of $33.8B and $26B, respectively.
A Rapid Rise In SOL And LUNA’s Trading Volume
According to the popular on-chain analytics platform, Santiment, investors’ interest in these projects has also caused a rapid rise in the trading volume of these cryptos. The Santiment report further remarked that the soaring trade volumes on SOL and LUNA coincide with the drop in trade volumes of BTC and ETH within the period mentioned above.
A deeper analysis of the Santiment report revealed that BTC’s average trade volume within the past 12 months is nearly $34B, while ETH’s is about $22B. However, the trade volume on both digital assets has dropped in the last few days, with BTC’s trade volume is now $18B on average, while ETH’s trade volume is $11B on average. By comparison, SOL and LUNA’s trade volume moved from the million-dollar range to the billion-dollar range in the last 12 months.
Are Investors Shifting Interest From BTC And ETH?
It is worthy of note that crypto investors’ are no longer focused on the top two digital assets despite their dominance in the crypto space. For more than five years, most institutional investors have preferred to invest in these top two digital assets rather than any other digital asset regardless of their appeal.
Trading volume on LUNA soared tremendously following Terra’s launch of its ETF. Many crypto investors also consider Terra as a viable Ethereum competitor as a growing number of DeFi and Web3 projects, and NFTs are being launched on the blockchain. Like Terra, Solana is another blockchain touted to rival Ethereum for a share of the DeFi, NFT, and Web3 market.
Its unmatchable speed of transaction completion and low transaction fees are two features that make it attractive for investors. Hence, it is no wonder that many Web3 game developers make the Solana blockchain the platform of choice for their gaming projects.
More Web3 Game Projects Will Be Launched On Solana Than Ethereum – Paradox Studios CEO
The CEO of Paradox Studios (a UK-based gaming project firm), Amio Talio, has remarked that the Solana blockchain is the future of Web3 game development projects. Talio made the statement during an official announcement on updates regarding his firm’s Web3 gaming projects. He said the Solana team has been developing the blockchain to make it highly appealing to play-to-earn (P2E) game developers.
Talio further revealed that he consulted with many developers while developing his P2E game, and almost all of them suggested Solana’s Rust platform for his project instead of Ethereum’s solidity language. Also, Talio claimed that Solana had shown commitment in funding Web3 games. Hence, Talio is convinced that future P2E game developers will choose Solana over Ethereum.
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