- Solana recently lost two NFT projects, y00ts and DeGods, to the Polygon and Ethereum network, according to recent announcements.
- Cryptocurrency expert Bitboy has predicted a mass exodus of projects from the Ethereum alternative network’s ecosystem.
- Solana price is in a decline and the altcoin is at risk of further losses as it trades below the 20, 50 and 200-day Exponential Moving Averages.
Solana, a competitor of Ethereum could witness a spike in the number of projects leaving its ecosystem. Crypto experts believe the exodus of DeGods and y00ts could be followed by other NFT projects in 2023. The price outlook on Solana remains bearish for Q1 2023.
Also read: Bitcoin price volatility alarmingly low, $16,500 is key liquidation level for BTC
Solana to face NFT projects walking out the door for Ethereum and Polygon
Solana, web3 infrastructure ecosystem has noted a steep decline in active developers in its ecosystem. Leading digital collectibles projects DeGods and y00ts recently announced that they are leaving the Solana network for Ethereum and Polygon.
Crypto expert Bitboy is convinced that more NFT and crypto projects will leave the Solana ecosystem soon. As two of the top-performing Non-Fungible Token projects leave the ecosystem, Bitboy predicts that more teams will feel the need to migrate to competitor blockchains like Ethereum.
Solana experienced several outages throughout 2022 and projects on the network suffered exploits throughout the year. Coupled with the dropping developer activity on the Ethereum-killer blockchain, these factors could drive more projects out of the ecosystem.
Bitboy tweeted:
I’m sorry if this hurts your feelings… but this is facts. More NFT and crypto projects will leave Solana.
Solana price outlook remains bearish in 2023
Solana could extend its losses if SOL fails to break out of its downtrend. Based on the chart below, Solana is currently trading below the 200-day (blue line), 50-day (orange line) and 20-day (green line) Exponential Moving Averages (EMAs). The Ethereum alternative token needs to make a comeback above the EMAs and break out of its multi-month downtrend to yield gains for holders.
SOL/USDT price chart
The chart above shows a bearish engulfing has wiped out Solana’s gains consistently in the ongoing downtrend. The altcoin is at risk of a drop to the monthly low of $10.94 if the bearish thesis holds. A close above the trendline could invalidate the bearish thesis and signal a possible trend reversal in the altcoin.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.