Inspired by the success of Ethereum’s PunkStrategy and PudgyStrategy, Solana’s NFT collections are catching a bid as part of a new flywheel-driven treasury meta.
For the first time in what feels like years, Solana NFT collections are having their floors swept, prompting fresh calls for an NFT season.
How are Bands.fun, an AlilianceDAO-backed onchain ETF creator, and Tensor reviving NFT sentiment on Solana?
After watching the value of their JPEGs melt away as Solana’s onchain economy chased memecoins, NFT bagholders are finally getting a slice of the action.
Following the example set by PunkStrategy and PudgyStrategy over on Ethereum, Solana-based collections like Mad Lads, Claynosaurz, and BoDoggos are getting swept as part of a new take on perpetual flywheels.
These new investment vehicles are made possible by Bands.fun, a relatively new application on Solana that enables users to permissionlessly create a basket of assets. Each basket is then tokenized, with fees from every incoming being used to acquire a baskets specified assets.
Every purchase automatically sets a limit order at a preselected multiple above the entry price, with profits on sells being used to buyback and burn the basket’s token.
At press time, the “icm god plays” band, a basket holding top tokens from the Believe launchpad, is holding the highest market cap. However, the Bands’fun platform is rapidly becoming a centre of focus for Solana’s passionate and enduring NFT community.
Since launch, the LadsStrategy band has accumulated 51 NFTs, valued at over 2,085 $SOL, making it the largest NFT basket on the platform.
The proliferation of NFT strategy baskets has inevitably caused a spike in volume across concerned collections. Naturally, traders are speculating on which Solana NFT collections could be next to receive the flywheel treatment, frontrunning band creation and pumping floor prices across the board.
However, despite the success enjoyed by the creators of the model over on Ethereum, social media commentators are not optimistic about the longevity of NFT-based strategies.
On the other hand, the network’s NFT marketplaces are relieved to have attention, albeit fleeting, back on JPEGs.
According to Tiexo data, 24-hour volume is up 78%, with 5,000 unique wallets trading NFTs on Solana. While ecosystem OGs are delighted to see fresh enthusiasm for JPEGs, only time will tell if this brief revival will ultimately lead to a wider NFT season.
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