Solana ecosystem could see a mass exodus of NFT projects leaving for Ethereum and Polygon, here’s why
- 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.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
