Solana NFT projects abandon the network for Ethereum, DeGods and y00ts announce their departure
- 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.
DeGods will officially bridge to Ethereum in Q1 of 2023.
— DeGods III (@DeGodsNFT) December 25, 2022
The bridge is not the destination.
It is on the path to get there. pic.twitter.com/Wy8CbGx5VZ
Project y00ts is ready to move to Polygon, Ethereum’s layer-2 scaling solution blockchain.
y00ts will officially bridge to @0xPolygon in Q1 2023. pic.twitter.com/Mnz25dJko1
— y00ts (@y00tsNFT) December 25, 2022
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.
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.
