Despite the negative press surrounding Solana [SOL] over the last year, interest in its NFTs has remained strong. However, as major NFT collections, such as DeGodsNFT and y00tsNFTs, plan to migrate to other blockchains, interest in Solana NFTs may begin to wane.
On December 26, DeGods announced that the NFT collection will bridge to Ethereum in the first quarter of 2023. The y00ts NFT collection, which is part of the same cohort, will, however, be moving to Polygon. The reason for the switch to these different blockchains has not been made public.
However, it is possible that shifting to different cryptocurrencies will help diversify the projects. Furthermore, in terms of floor price, it would help protect these projects from single points of failure.
Because these projects had the largest NFT collections on the Solana network, it could hamper Solana’s NFT growth. According to Dune Analytics data, the number of Solana NFT transactions has decreased since peaking at the end of November.
The number of transactions may fall even further after the DeGods and y00ts NFT collections migrate.
Other blockchains, such as Polygon, will benefit from this migration and outcompete Solana in this sector. Polygon has already shown signs of progress in this area, with multiple collaborations with Reddit and Instagram.
Polygon could become a contender for the top spot in terms of NFTs if it can capitalise on the y00ts NFT hype as well. Although this migration development may appear to be good news for Polygon, Solana and SOL holders may be negatively impacted in the long run.
SOL’s prices have fallen by 23.14% since December 14th. SOL was trading between $11.78 and $11.21 at the time of writing. It was 33.89, indicating that the sellers had the upper hand.
The Chaikin Money Flow (CMF) was 0.08 at the time and was also observed to be declining.
Along with SOL holders, the Solana network as a whole was feeling the effects of the NFT move.
Solana’s fees had already been declining, according to the token terminal. If interest in Solana NFTs declines, so will the amount of revenue collected by Solana.
It remains to be seen whether Solana can recover from this situation.
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