2 - 3 minute read
Solana, the decentralized smart contract platform, may experience a drop in its NFT market as DeGodsNFT and y00tsNFTs, two of its largest NFT collections, plan to shift to Ethereum and Polygon, respectively. This step may reduce the number of Solana NFT transactions, hence affecting the platform’s revenue. After reaching a peak in November, Solana’s NFT transactions have already begun to fall, according to Dune Analytics.
The DeGods NFT collection will transfer to Ethereum in the first quarter of 2023, whereas the y00ts NFT collection will go to Polygon. The reasons for these moves have not been published, but it is believed that they are intended to insulate the projects from a single floor price failure point by diversifying them.
Polygon stands to gain from the y00ts NFT migration, since the company has already made strides in the NFT sector through partnerships with Reddit and Instagram. If Polygon is able to capitalize on the y00ts NFT craze, it might become a formidable competitor in the NFT market.
The market for non-fungible tokens in Solana is not the only area that is failing. The price of the platform’s token, SOL, has decreased by 23.14% since December 14 and is presently trading between $11.78 and $11.21. At 0.08, the Chaikin Money Flow (CMF) is likewise decreasing. Moreover, according to token terminal, Solana’s collection of fees has decreased.
Uncertainty exists regarding Solana’s ability to recover from these setbacks. The departure of DeGods and y00ts, two prominent NFT collections, as well as the decline in SOL’s value and the decrease in Solana’s collected fees, may provide challenges for the platform.