Solana's troubles continued after the collapse of FTX, including much speculation surrounding Alameda Research's bankruptcy - believed to be in the hundreds of millions of dollars that seems to affect the NFT on Solana as well. Two of the top projects in the Solana ecosystem have announced their move to new chains in Q1 2023.
DeGods And y00ts Move To Another Chain
During the downtrend, Polygon scored a victory in the NFT arena by reaching out to y00ts and adding its first collection of community NFTs to many partners and organizations, including Reddit, Starbucks, and even Donald Trump's latest NFT collection.
Nike, Adidas, Starbucks, Disney, Shopify, NFL, TicketMaster, Reddit, Instagram, Facebook, Prada, Dolce & Gabana, FlipKart, Coca-Cola, Adobe, Bentley, Stripe, Draft Kings, 100 Thieves, and that's just a few.
— Frank III (@frankdegods) December 26, 2022
I think that the @y00tsNFT brand just got stronger.
But let's see 🤷♂️
Furthermore, the y00ts project has confirmed its shift to Polygon in the first quarter of next year.
y00ts will officially bridge to @0xPolygon in Q1 2023. pic.twitter.com/Mnz25dJko1
— y00ts (@y00tsNFT) December 25, 2022
Meanwhile, DeGods will migrate to Ethereum, competing with the enormous blue chips with the most significant sales volume in the NFT.
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
NFT Solana Community Loss
Two key NFT collection exit Solana is a big blow to the Solana NFT community. According to CryptoSlam NFT statistics, both DeGods and y00ts are in the top 20 sales volume by all-time measure, excluding all time (24 hours, 7 days, 30 days). DeGods and y00ts, in particular, hit the top 5 in terms of sales volume within 24 hours. Both sets are the only ones created by Solana.
Token SOL
Solana is likely the most critical token in the FTX disaster. This cryptocurrency has risen out of the top 25 in market cap, which is surprising given that $SOL was formerly among the top ten tokens.
Aside from the token price, Solana's popularity in the NFT community has dwindled. DeGods and y00ts creator Frank has long hinted at shifting to new chains. Magic Eden, an NFT marketplace that began only on Solana, revealed integration with Polygon just last month.
Personal Reviews
After the two top projects on Solana left this blockchain, Solana's situation looked increasingly tricky after the FTX and the Alameda Research crash. Solana can't seem to return to her golden age when the blockchain is continuously growing and expanding the ecosystem with the token creating a new ATH around $259. In addition, the Solana blockchain is constantly experiencing problems leading to the "shutdown" of the chain, affecting investors' transactions on this blockchain with cheap gas fees and fast transaction speed, so projects leaving Solana seem the right decision to bring convenience to investors.
Regarding the NFT DeGod project, the ambition from this project is quite large when officially switching to the Ethereum ecosystem - the leading chain for NFT with many famous projects such as Bored Ape Yacht Club or CryptoPunks. In addition, DeGods also has the potential to reach out to Ethereum whales, which can boost sales volume and push this project to the top of NFT collections as well as reach the extremely potential NFT community on the Ethereum blockchain.
As for y00ts, the project will officially join the Polygon blockchain - the blockchain trusted by many big companies when releasing NFTs like Starbucks, and even former US President Donald Trump also released the first NFT collection on this chain. The y00ts project will not need to worry much about Polygon's infrastructure as this is a blockchain with relatively cheap gas fees and a speed not inferior to Solana, so the community will still be reasonably familiar and enjoy many benefits when y00ts switch to Polygon.
Summary
In the near future, the Solana blockchain will face many difficulties in keeping projects on the chain and continuing to build on the chain. Solana Foundation needs solutions to retain old projects and attract new ones to "join" Solana. After Degods and y00ts officially leave Solana in Q1 of 2023, the NFT market on Solana is expected to be quite bleak and needs a boom from new NFT projects for NFT on Solana to continue to grow.
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Disclaimer:
The information, statements and conjecture contained in this article, including opinions expressed, are based on information sources that Holdstation believes those are reliable. The opinions expressed in this article are personal opinions expressed after careful consideration and based on the best information we have at the writing's time. This article is not and should not be explained as an offer or solicitation to buy/sell any tokens/NFTs.
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