Is Solana at the brink of a downfall? This final nail in SOL’s coffin could spell harm

• Solana loses out its main NFT collections to Polygon and Ethereum
• Solana’s present state by way of value and income stays bleak

Regardless of the FUD that surrounded Solana [SOL] over the previous yr, the curiosity in its NFTs remained sturdy. Nevertheless, this curiosity in Solana NFTs would possibly begin to decline as main NFT collections, DeGodsNFT and y00tsNFTs plan emigrate to different blockchains.

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Parting methods however how?

DeGods made an announcement on 26 December that the NFT assortment will bridge to Ethereum in Q1 of 2023. Nevertheless, the y00ts NFT assortment, which is a part of the identical cohort, could be moving to Polygon. The explanation for the transfer to those completely different blockchains has not been formally disclosed. 

Nevertheless, it might be speculated that the transfer to completely different cryptocurrencies would assist diversify the initiatives. Moreover, it could assist defend these initiatives from single factors of failure by way of floor price.

As these initiatives had been the most important NFT collections on the Solana community, it may trigger issues for Solana’s NFT progress. From the information gathered by Dune Analytics, it was noticed after peaking on the finish of November, the variety of Solana NFT transactions had decreased.

After the DeGods and y00ts NFT collections migrate, the variety of transactions could find yourself reducing even additional.

Supply: Dune Analytics

Nevertheless, different blockchains like Polygon, will be capable to revenue from this migration and outcompete Solana on this sector. Polygon was already noticed to be making progress on this sector with a number of collaborations with Reddit and Instagram.

If Polygon manages to capitalize on the y00ts NFT hype as nicely, Polygon may grow to be a contender for the highest spot by way of NFTs. Though this migration improvement could sound like excellent news for Polygon, Solana and SOL holders could also be negatively affected by this improvement in the long run.

    How a lot SOL are you able to get for $1?

Going ‘SOL’o

Since 14 December, SOL’s costs have fallen by 23.14%. On the time of writing, SOL was buying and selling between the $11.78 and $11.21 ranges. It was 33.89, indicating that the momentum was with sellers. 

The Chaikin Cash Move (CMF) was at 0.08 and was additionally noticed to be declining throughout this era.

Supply: Buying and selling View

Together with SOL holders, the general Solana community was feeling the repercussions of the NFT transfer as nicely.

In response to token terminal, the charges collected by Solana had already been declining. If the curiosity in Solana NFTs declined the quantity of income collected by Solana may also lower.

Supply: token terminal

It stays to be seen whether or not Solana will be capable to bounce again from this case.