fxs_header_sponsor_anchor

Solana NFT projects abandon the network for Ethereum, DeGods and y00ts announce their departure

|ByEkta Mourya

  • Solana NFT projects DeGods announced that it will bridge to Ethereum in the first quarter of 2023; y00ts will bridge to Polygon. 
  • Based on a recent report by Token Terminal, active developers on the Solana network witnessed a steep decline - a 90% drop in 2022. 
  • Solana price is at risk of steep decline; a drop to the monthly low of $10.94 is likely for the Ethereum alternative. 

Solana is considered the second-largest NFT ecosystem in the world. Interestingly, the Ethereum alternative is in a tough spot, with top digital collectable projects leaving its network for competitors. The outlook on Solana remains bearish in 2022.

Also read: Ethereum rival Cardano sharks gobble up 331 million ADA tokens, fuels fear of mass sell-off

Solana NFT projects reveal plans to migrate to competitor chains

Solana network’s NFT projects DeGods and y00ts have announced plans to relocate to competitor blockchains Ethereum and Polygon. While Solana is considered the second-largest NFT ecosystem in the world, active developers and projects are leaving the network. Solana’s marketplace for NFTs is the fourth in trading volume, according to data from DappRadar. 

According to Token Terminal data, the number of active developers in Solana has decreased by 90% in 2022. With the declining activity on the Solana network, it is clear that projects and developers are moving on to competitor chains like Ethereum and layer-2 scaling solutions. 

Following the FTX exchange’s collapse and bankruptcy, Solana price declined in the crypto bloodbath. NFT projects DeGods and y00ts recently announced their plans to migrate to rival blockchain networks. 

Why do Solana projects want to migrate to Ethereum and Polygon

DeGods NFT project officially announced that it would be bridged to Ethereum in Q1 2023. The project said that it is a bridge and not the destination. The NFT collection is on the path to getting there. 

The team is set to release the bridge details when it is released and tested. The Season three roadmap for the collection will be released in January 2023 with further information. 

Project y00ts is ready to move to Polygon, Ethereum’s layer-2 scaling solution blockchain. 

With two major Non-Fungible Token projects moving off the Solana blockchain, it becomes more apparent that the development activity on SOL is declining.

Solana price outlook remains bearish in 2022

Solana price is currently in a downtrend and remains at risk of declining to the monthly low of $10.94. Solana price is 95.6% below its all-time high of $259.56 and currently trading at $11.33. 

SOL/USDT price chart

Solana price is at risk of declining to support at the weekly low of $11.07 and monthly low of $10.94. If the Ethereum killer breaks out of its downtrend with a close above the trendline, it could invalidate the bearish thesis. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

RELATED CONTENT

Loading ...

Copyright © 2024 FOREXSTREET S.L., All rights reserved.