Good day everyone,

I hope you are all well and had an excellent Christmas, welcome to CryptoGod-1's blog on all things crypto. Some interesting news has emerged over Christmas from the NFT space, which could have a huge impact on the Solana Blockchain, as both DeGods and y00ts decide to migrate to the Ethereum network.

Announcements from DeGods and y00ts

I am certain we are all aware of what NFT's are at this stage, and how they work between different networks, so I wont go into detail on that. Instead I will begin with the announcement from both projects, which we native to the Solana blockchain, of their intentions to migrate over to Ethereum.

The original attraction for NFT projects to launch on Solana had been because of the network’s cheap gas fee's in comparison to other competitors such as Ethereum. This fuelled the development of many popular projects on the network, but repeated  network outages have made the Blockchain stagnate is users eyes.

Below you can see the Tweets which both projects released within a minute of each other. It is important to note both projects have the same founder.

As noted in the tweets above, both project are planning a permeant move to the Ethereum ecosystem, with y00ts moving to Polygon, the layer-2 scaling solution, and DeGods moving directly onto Ethereum. Both are looking to achieve the migration in the first Quarter of 2023, meaning them are looking to jump from the Solana ship ASAP.

Why are DeGods and y00ts leaving Solana?

According to information gathered by Token Terminal, the number of active developers has dropped by a staggering 90% on the Solana Blockchain throughout 2022, currently sitting around the $218.16 million mark. Although considered the second biggest NFT ecosystem in the world, the Ethereum-alternative is in a tough spot with two of the top digital collectible projects leaving its network for competitors. With more and more developers leaving the network, DappRadar is showing that Solana is now only fourth in the rankings of trading volume for NFT marketplaces. 

DeGods is due to release its Season Three roadmap for their collection in January 2023, which will likely involve the migration to Ethereum along with further details. Crucially, they have made it clear the bridge from Solana to Ethereum will merely be a path to the final destination. The profile-picture project had a rocky launch in late 2021, but since then had grown to become the most valuable NFT project on Solana. Y00ts, being the younger of the two projects, will look to grow its community based work on Polygon and make the most of its cheaper transaction fees for users.

Impact this will have on Solana and its Price

Speculations is also rife that this is in part from the impact of the FTX collapse. When the FTX exchange went bankrupt, the Solana price crashed with it. To be fair almost all tokens and coins took a hit back in early November 2022 when the fallout of FTX impact the entire crypto space, Solana’s total value locked plunged almost 70% since November the 7th. The Solana foundation also revealed back in mid November that it had tens of millions of dollars in cryptocurrencies stranded on the FTX exchange, which was locked and not allowing withdrawals. On top of that, they also had 3.24 million common stock shares in Sam Bankman-Fried’s bankrupt crypto exchange. Basically what this means is Solana had a close relationship with FTX and Bankman-Fried, meaning when he went down, they also got majorly hit.

Currently SOL, the native token on the Solana Blockchain and used by developers to interact with the network and create smart contacts, is in a downtrend. This slump has taken place across the board but Solana is now at further risk to drop below its monthly low of $10.94. It is currently trading around 95% below its all time high price of $259.56, and this news is likely to cause more fear amongst investors and drop the networks value even further. The token is currently 18th on CoinGecko at the time of writing, but it is falling and a long way from where it was just a year ago, when SOL had long been a top 10 token.

Wins for Ethereum and Polygon

While things are looking bleak for Solana, this is certainly a mjor coup for Ethereum and especially Polygon. The layer-2 scaling solution has recently been host to other ‘corporate’ partners such as Reddit, Starbucks, and even Donald Trumps NFT collection. Now Polygon has secured a major community based project to add to its growing collection of developrs. 

Etehreum meanwhile will be able to boast DeGods as the latest competitor to the blue chip projects on its network which are known to command the most volume in the NFT space

Frank III, the creator of DeGods and subsequent y00ts, released a number of tweets on the subject and below is one of the most optimistic tweets among them:

However, as with most stories in crypto, there is always a bit of controversy somewhere. As noted on Reddit by user real_mooshi, apparently DeGods and Y00ts made an offer to remain on the Solana network IF the Solana Foundation paid them to do so. They did not get the offer, and therefore moved to Polygon and Ethereum where apparently Polygon paid a staggering $5 million to bridge the y00ts collection over, and it is unknown what Ethereum paid to do likewise for DeGods. How true or not this is remains to be seen.

Could this create a knock on effect for Solana with more projects deciding to leave the network? As it is things are not looking good for the once dubbed "Ethereum-Killer." It will be interesting times ahead for sure.

Peace. CryptoGod-1.

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