- Two high-volume NFT projects are leaving the Solana network this week.
- SOL whales are moving their funds off the network as well.
- The price of SOL remains above $20, and NFT sales are picking up.
The Solana ecosystem takes a hit as several SOL whales and NFT projects pull out of the network.
This week marks the migration of non-fungible token (NFT) projects y00ts and DeGods from the Solana blockchain. Beyond the notable NFT projects moving to the Polygon (MATIC) and Ethereum (ETH) blockchain networks, SOL whales are also ditching the network.
The series of blows is yet to reflect on the Solana price chart, as the network’s native cryptocurrency, SOL, remains mainly unaffected.
The Great Solana Migration
In late December 2022, news surfaced that the y00ts and DeGods NFT projects would leave the Solana blockchain network. Following the announcements, the price of SOL dipped below $10.
However, SOL retraced and has since remained on a plateau above $20, despite a brief dip to $18 on March 9th, 2023.
Y00ts community member Ygor revealed that the NFT holders highly support the migration. According to Ygor, more than 75% of the total supply of y00ts NFTs already migrated to Polygon in just over 24 hours.
Furthermore, DeGods commences its migration from Solana to the Ethereum blockchain on March 31st. The decision is reportedly not driven by the $3 million grant from Polygon Labs but rather by the increased adoption of the network.
However, the NFT sales volume on the Solana network reflects an increase of 62.09% over the past 24 hours, according to CryptoSlam. The volume of buyers and transactions has increased just under 7%, and the seller volume shows only a decrease of 2.63%.
Beyond Solana’s NFT ecosystem, whales appear to be migrating away from the Proof of History blockchain network.
Solana Whale Migration
On March 29th, Whale Alert shared that a large amount of SOL was transferred from an unknown wallet to Coinbase. According to the alert, a whopping 2,090,758 SOL was transferred, worth approximately $42 million at the time of writing.
The transaction caused a notable dip on the 24-hour chart, with community members opining that the whales are dumping SOL.
24-hour chart for Solana. Source: CoinMarketCap
At the time of writing, SOL is trading at $20.28, recording a 103.63% increase from its three-month low of $9.
The network’s native cryptocurrency appears to be withstanding the numerous blows facing Solana this week. If SOL holds above $20, it will serve as a testament to the community sentiment beyond y00ts, DeGods, and the migrating whales.
On the Flipside
- The migration of y00ts and DeGods from Solana has led to concerns among Solana enthusiasts.
- Solana remains at the #10 rank by market capitalization, according to CoinMarketCap.
Why You Should Care
This migration highlights the competition among different blockchain ecosystems. It also speaks to the importance of NFT projects being flexible in migrating to other blockchain ecosystems as needed.
Read more about Solana’s 2023 performance:
Solana (SOL) Rockets 14% Following Community & YTD Growth
Read more about recent action on Cardano (ADA):
Sebastien Guillemot: Cardano (ADA) “Will Be a Top EVM Chain Next Month”