Top NFT projects leave Solana for Ethereum

Top NFT projects DeGods and y00ts say goodbye to Solana blockchain and switch to Ethereum and Polygon.

DeGods and yoots made independent announcements announced that it will exit its home blockchain after a testing phase in the first quarter of 2023. Also, new roadmaps for the NFT projects are expected in January 2023.

Additionally, according to a Reddit post, DeGods and y00ts asked the Solana Foundation for millions of dollars to stay on their blockchain. The user named u/real_mooshi also claimed that Poylgon has been shown to have spent $5 million on the bridge to y00ts. However, according to the user, the amount that Ethereum paid is not yet known.

DeGods and y00ts dominate the top 3 NFT projects on Solana

On the NFT marketplace OpenSea, the two projects were almost always in the top 3 of the largest projects measured by trading volume. Since the IPO on December 25, 2022, DeGods’ trading volume has reached almost 2.2 million SOL, while that of Y00ts increased to a total of 1.7 million SOL that day. A migration of the projects would therefore hit the blockchain ecosystem hard.

Top 3 Solana NFT projects by trading volume Image by: OpenSea

The chain also dropped out of the top 10 blockchains by trading volume, according to tracking platform DeFiLlama. The blockchain currently occupies the eleventh place with 91 protocols and a total value locked (the total value of all locked assets) of 218.4 million US dollars. Ethereum and Polygon, on the other hand, remain in the top 5. Ethereum remains by far the largest DeFi chain with over 600 protocols and a TVL of $23.38 billion.

Polygon currently holds fifth place with 352 logs and a TVL of $993.41 million. According to on-chain data, Ethereum controls nearly 60% of the assets locked in the DeFi space, while Polygon manages 2.5%.

TVL of blockchain pie chart
TVL for Blockhain a picture by: DeFiLlama

BeInCrypto recently reported that Solana was able to maintain high NFT sales volume in its ecosystem despite the weak crypto market. According to Cryptoslam, blockchain is currently second only to Ethereum. Polygon is significantly behind in the ranking from December. However, the migration of the two largest projects will probably change this.

Polygon and Ethereum Remain Stable: SOL Investors Concerned

In a recent podcast, co-founder Anatoly Yakovenko addressed the issues associated with blockchain failures. Although Yakovenko stated that the network shutdowns are the biggest challenge and priority for developers, the industry is worried about how 2023 will develop.

Not only this year, there were repeated errors that led to massive delays in network transactions. Since the launch of the blockchain in March 2020, there have been a total of eight major failures. These were either caused by memory overload, errors or power outages.

In May this year, the team had to take the network offline for several hours. Then in June another fiasco took place. Then in October, a problem with the validators led to another network outage. However, Polygon and Ethereum have never experienced such problems.

However, the blockchain team promises to use the new validation system to optimize the network’s reliability in the coming year. This should give the blockchain the same stability and security as Ethereum’s. Despite concerns about network stability, the project already introduced this system in the 2023 roadmap.

According to the roadmap, the network will only get better with the launch of Firedancer, another validation client from Jump Crypto. If this catches on, it will reportedly be nearly impossible for a single issue to bring down the network – the security and stability of the network is increased. The timetable says:

“Firedancer will make Solana the only other blockchain network besides Ethereum to have more than one validating client.”

Many experts predict that the interaction between consumers and brands through NFTs will reach a new level by 2023. Therefore, the Firedancer upgrade will undoubtedly play a crucial role for the blockchain.

The SOL price, like most cryptocurrency prices, is still recovering from the effects of the FTX crash. Ethereum remains the second largest cryptocurrency by market capitalization, while Solana is in 11th place and Polygon is in 18th place.

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