Is y00ts’ Ethereum Migration a Blow to Polygon’s NFT Ecosystem?

y00ts move away from Polygon has raised questions about the Polygon NFT ecosystem.

Two y00ts posing infront of a large neon Ethereum logo.
Created by Gabor Kovacs from DailyCoin
  • y00ts is ditching Polygon for Ethereum.
  • The move has raised questions about the Polygon NFT ecosystem.
  • The data tells a different story.

The migration of DeLabs’ NFT project y00ts to Polygon in April 2023 was met with significant fanfare due to the project’s success on the Solana network. But just four months later, y00ts is now bidding farewell to Polygon.

On Wednesday, August 9, DeLabs announced that y00ts would migrate to the Ethereum network. The team also revealed they would return $3 million in grants from Polygon Labs. 

Sponsored

Following DeLabs’ decision, questions about Polygon’s NFT ecosystem have arisen.

y00ts Exit a Blow to Polygon?

Several crypto community members have asserted that y00ts’ planned exit from the Polygon network is a blow to the network. “Sucks for polygon,” one user tweeted in response. Prominent Cardano influencer Chris O simply stated, “Rip Polygon.”

Despite the negative views, it is worth noting that not all are pessimistic about the move. zkPhantazm suggested that y00ts had ended up giving Polygon free promotion, framing it as a win for Polygon Labs. Additionally, the user claimed that y00ts was bailing because it had failed to meet the KPI for the grant. zkPhantazm received a retweet from Polygon Labs Executive Chairman Sandeep Nailwal for his efforts.

So how much of an impact will y00ts’ exit have on Polygon’s NFT ecosystem?

Polygon’s NFT Ecosystem

Polygon has processed over $30.8 million in NFT sales in the past 30 days, behind only Solana and Ethereum per data from CryptoSlam at the time of writing. For clarity, y00ts only accounts for about 8% of Polygon’s NFT sales within the period with $2.5 million.

Sponsored

In comparison, collections like Draft Kings and Misfits by Pluto are garnering notoriety within the Polygon community. Draft Kings, for example, saw over $10 million in sales in the last 30 days, representing more than half of what y00ts has generated during its four-month stint at Polygon, with $3 million of those sales processed in 24 hours on Wednesday, August 9.

Responding to y00ts exit, Polygon Labs CEO Marc Boiron asserted that while he was disappointed by the decision, he was not worried due to Polygon’s NFT ecosystem, which he hailed for its infrastructure and growing number of marketplaces.

Polygon Labs has revealed that a part of the returned y00ts grant would be used to incentivize further growth in the NFT ecosystem.

On the Flipside

  • Some pundits have suggested that y00ts’ move to Ethereum is driven by a search for hype.
  • y00ts sales volume on Polygon has surged 278% following the announcement of the migration to Ethereum, per data from CryptoSlam.

Why This Matters

y00ts is one of the most popular profile picture NFT projects. The collection’s quick exit from Polygon raised questions about the network’s NFT ecosystem. However, the data suggests it may not be as impactful as some fear.

Read this to learn more about y00ts’ exit from Polygon:

DeLabs’ Y00ts Undertakes Second Major Migration, Leaving Polygon

Learn more about Coinbase’s Base launch:

Coinbase’s Layer-2 Base Kick-Offs’ Onchain Summer’ with Public Release

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Tags
Author
Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.