Non-fungible tokens (NFTs) have transformed the digital art and collectibles world, with the market surging over 21,000% in 2021. While growth has slowed in 2024, NFTs enable new digital ownership models and have valuable real-world applications across gaming, licensing, identity, credentials, and more.
But for creators entering the NFT space, choosing the right blockchain to build on is critical yet challenging. With hundreds of options and new chains emerging, how do you select the best foundation for your NFT project?
This guide will explore the top blockchains for NFTs in 2024 based on in-depth analysis of:
- Security
- Scalability
- Costs
- Trading volume
- Developer ecosystem
These key factors were examined to determine the top 3 recommended blockchains for NFT projects in the coming year:
1. Ethereum – The dominant NFT blockchain for 2022 with unparalleled ecosystem maturity.
2. Solana – Fast and affordable challenger with rapidly growing NFT adoption.
3. Stacks – Innovative hybrid model bringing NFTs and smart contracts to Bitcoin.
For creators and investors looking to maximize the value and user experience of their NFTs, understanding the comparative strengths of each blockchain is essential. This guide will provide an expert assessment of the NFT landscape to help you make informed decisions for your next projects.
Evaluating the Top Blockchains for NFTs
The ideal blockchain for NFTs should offer a combination of key attributes:
Security
- Resistant to 51% attacks – Consensus protocol prevents takeover by a single entity
- Distributed network of validators – Ensures trustless verification of transactions
- cryptographically robust – Underlying algorithms and encryption provide protection
Scalability
- High transactions per second (TPS) – Enables usage by large numbers of users
- Low latency – Fast processing and confirmation of transactions
- Cost-effective scaling solutions – Ability to handle increased demand over time
Costs
- Affordable minting/trading fees – Minimizes barriers to creating and trading NFTs
- Price stability – Consistent fee structure resistant to volatility spikes
Ecosystem Development
- Vibrant community of builders – Promotes innovation and collaborative growth
- Developer-friendly tools – Facilitates creation of high-quality NFT platforms and integrations
- Institutional investment – Signals long-term viability to users and the broader crypto ecosystem
NFT Volume
- Total value of NFT transactions – Gauge on-chain adoption and liquidity
- Diversity of NFT projects – Range of active use cases and asset types
With these evaluation criteria in mind, let‘s take a deep dive into the top 3 recommended blockchains for NFTs in 2024.
1. Ethereum
As the first broadly adopted smart contract platform, Ethereum has dominated the NFT landscape since projects like Cryptopunks launched in 2017. In 2022, Ethereum continues to lead all blockchains for NFT volume by a massive margin.
NFT Trading Volume:
- Ethereum handled $4.242 billion in NFT trading volume over the last 30 days.
- Over 90% of all NFT transactions still occur on Ethereum.
- Top projects like Bored Ape Yacht Club and CryptoPunks drive significant volumes.
Security
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Ethereum utilizes a Proof-of-Work (PoW) consensus algorithm, providing best-in-class security against 51% attacks.
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PoW requires immense computing power to overwrite or corrupt transactions, making Ethereum virtually unhackable.
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Plans are underway to transition Ethereum to a Proof-of-Stake model, which some critics argue could reduce security long-term.
Scalability
- Ethereum currently handles around 15 transactions per second (TPS)
- Congestion and high fees during periods of peak demand hamper usability.
- Upcoming improvements like sharding aim to drastically improve TPS and reduce costs.
Costs
- High demand has frequently led to exorbitant gas fees on Ethereum.
- NFT minting cost hundreds of dollars in mid-2021. Fees have since cooled but remain volatile.
- The average Ethereum transaction fee was $8.57 over the past month.
Ecosystem Development
- Ethereum has by far the most robust development ecosystem in the blockchain space.
- Over 3,300 DApps and projects are built on Ethereum according to the official statistics.
- Developer tools like Solidity and Truffle provide a mature, full-featured environment.
As the industry leader, Ethereum is still the go-to blockchain for prominent NFT projects, despite its limitations with scalability and fees. The Ethereum roadmap offers promising solutions to these pain points over time. But some newer blockchains are seeking to challenge Ethereum‘s dominance in the NFT arena.
2. Solana
Launched in 2020, Solana prioritizes scalability, transaction speed, and low fees relative to Ethereum. With significant venture capital backing, Solana offers a compelling alternative for NFT projects.
NFT Trading Volume:
- Solana facilitated over $329 million in NFT trading volume in the past 30 days.
- Major marketplaces like Solanart, Solsea, and DigitalEyes are gaining momentum.
- Collections like Degenerate Ape Academy and SolPunks exemplify Solana‘s growth.
Security
- Solana utilizes a Proof-of-History consensus model relying on timestamps to order transactions.
- Some researchers argue this approach is less battle-tested than Ethereum‘s PoW security.
- Denial of service attacks have intermittently disrupted Solana, raising concerns. Enhancements to network resilience are in progress.
Scalability
- The Solana network can theoretically process over 700,000 transactions per second.
- Actual throughput exceeds 50 million transactions per day.
- Average cost per transaction is just $0.00025.
Costs
- Solana offers the fast and affordable experience that has eluded Ethereum.
- Predictable fees below $0.001 make Solana accessible for creators and traders.
Ecosystem Development
- Solana has quickly built developer momentum, but trails Ethereum in maturity.
- Over 350 projects and 60+ ecosystems partners are building on Solana.
- SDKs for Rust, C++, Typescript and other languages simplify development.
- Investors like a16z, Polychain, and Alameda Research fund its growth.
For NFT projects prioritizing scalability and cost-efficiency over battle-tested security, Solana presents a compelling blockchain option as its ecosystem evolves.
3. Stacks
The Stacks blockchain takes a unique hybrid approach, aiming to combine Bitcoin‘s unparalleled security with the smart contract functionality needed for NFTs.
NFT Trading Volume:
- Stacks facilitated $0.7 million in NFT trading volume over the last 30 days.
- As a new chain, volumes are still low compared to Ethereum and Solana.
- But major brands like Ark Invest, Samsung, and Qualcomm see long-term potential.
Security
- Stacks utilizes Proof-of-Transfer to inherit the security of Bitcoin‘s blockchain by settling transactions on BTC every 10 minutes.
- Leveraging Bitcoin‘s Proof-of-Work model brings best-in-class security to Stacks.
- Paired with Clarity‘s functional programming for smart contracts, Stacks offers a secure foundation for NFT development.
Scalability
- Innovations like recursive SNARKs allow Stacks theoretical throughput up to 1.67 million transactions per day.
- Average transaction time is under six seconds with average fees around $0.04 currently.
Costs
- With fast transaction finality, predictable fees, and micropayments in the roadmap, Stacks is positioned as a more affordable Ethereum alternative.
Ecosystem Development
- As a new smart contract platform, Stacks trails Ethereum and Solana in developer momentum.
- But its technical approach has garnered attention from major blockchain investors.
- Qualcomm, Tim Draper, and other prominent names are funding development.
For NFT projects seeking the ultimate technical stability, Stacks‘ hybrid model warrants consideration. While ecosystem maturity lags, its architectural innovations could enable compelling new NFT use cases leveraging Bitcoin.
Comparing Additional Blockchain Options
Beyond the top three, developers have several alternative blockchain options that warrant consideration for specific NFT use cases:
Flow – Created by Dapper Labs, the team behind NBA Top Shot and CryptoKitties, Flow offers a developer-friendly blockchain tailored for NFTs, games, and digital assets.
Tezos – With formal verification and a strong track record of security, Tezos facilitates several major NFT projects like OneOf through environmentally friendly proof-of-stake consensus.
WAX – As a purpose-built NFT blockchain, WAX emphasizes usability and efficiency. It‘s proven successful for mass market use cases like Topps‘ official MLB collectibles.
Polygon – A layer-2 scaling solution for Ethereum, Polygon sidesteps gas fees while leveraging Ethereum‘s security for projects like OpenSea.
These additional blockchains have specific strengths that could align well with particular NFT concepts. Assessing their capabilities against your project‘s needs is advised.
Conclusion – Key Considerations for Your Ideal NFT Blockchain
Choosing the right foundational blockchain is one of the most important decisions when launching an NFT project. Here are key questions to help guide your selection:
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What is our budget for NFT minting and trading fees? Lower-cost chains like Solana or Polygon may be preferable.
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How mission-critical is proven security? Ethereum‘s track record makes it ideal for high-value NFTs.
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What transaction speed do we require? For games or apps needing thousands of TPS, Solana and Flow excel.
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Which chains have an NFT ecosystem relevant to our project? Following the community can be beneficial.
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How will our needs evolve in 3-5 years? Factor in long-term roadmaps of blockchain scaling and development.
While Ethereum remains dominant for now, alternatives like Solana and Stacks offer varying advantages that may align with your NFT goals. By evaluating your needs through technical, economic, and ecosystem lenses, you can make informed blockchain decisions to maximize the success of your NFT venture.