Key Takeaways:
- Two top Solana NFT projects have decided to migrate to other blockchain platforms.
- Twitter responded to the news by asking,"Is Solana dead?"
- SOL price continued its downtrend for the seventh straight day.
NEW DELHI (CoinChapter.com) — Solana’s fortunes seem to be turning for the worse as 2022 ends. Two of the top Solana NFT projects, DeGods, and Y00ts, have announced that they will migrate to other blockchain platforms in 2023.
DeGods announced that the project would move to Ethereum in the first quarter of 2023, while y00ts would bridge to the Polygon blockchain platform.
Rohun Vora, DeGods and y00ts creator explained the rationale behind the migration in a Dec 26 Twitter spaces discussion. Vora stated that the projects are migrating to platforms he believed would likely propel NFT adoption.
The support from this [Solana] community has meant the world to us. Thank you for putting us on the map. [However,] we have come to the realization that in order to grow, we need to explore new opportunities. We believe now is the time to take a calculated risk and embark on a new journey
Rohun Vora said in a Twitter announcement
Vora noted the struggle between streaming services like Netflix, Disney Plus, etc., to secure the best intellectual property (shows or movies), comparing it to the battle between different blockchains to roll out the best NFT platform.
Meanwhile, Vora confirmed that the migration of existing NFTs would be “owner/holder opt-in.“
NFT Project Migration Has Twitter Buzzing, “Is Solana Dead?“
News of two major NFT projects migrating to other platforms fueled the rumors surrounding Solana’s fate. Once upon a time, analysts used to group Solana with other projects called “Ethereum killers,” or projects that would likely overtake or replace Ethereum.
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However, the Sam Bankman-Fried-backed platform suffered major backlash following the FTX collapse. Additionally, Alameda Research’s tactic of selling SOL tokens to protect its FTT holdings resulted in the SOL prices nosediving.
The two NFT projects are the latest additions to a list of projects that left the Solana ecosystem.
As news of the migration hit the wire, crypto Twitter came alive, with many asking, “Is Solana dead?”
Ben Armstrong, Bitboy Crypto founder, took a Twitter poll in which 69.7% of users replied “Yes” to “Is Solana Dead?“
In a later tweet, Armstrong expressed surprise that even 30% of the 14,748 voters believed Solana still had some life left. However, another Twitter user, Andrew, told his 20,000 followers that Solana was dead.
Truth: Solana is dead. Dead dead. Anyone hanging on to the AWS based vaporware that @SBF_FTX created shouldn’t be taken seriously.
Andrew stated in a tweet.
But Solana has not lost all its followers. ThreadGuy stated that Solana wasn’t dead; rather, the platform “just lost their blue chip project.” The ‘Director of Vibes’ at Jenkins Yacht Valet noted that the ecosystem only requires a new NFT project to make a comeback, noting that
Everybody loves an underdog.
SOL MACD Likely To Turn Bearish
Meanwhile, SOL price continued to trend downward for the seventh consecutive day, with the Solana token dropping nearly 4% to form a low near $10.9 on Dec 27. Moreover, the downward-sloping EMA trendlines underscore the bearish pressure on SOL price action.
Also Read: Sam Bankman-Fried Told FTX Execs to Hide $8B in Alameda’s Liabilities
The momentum oscillator MACD continued to be bearish for Solana price action. Positive bars on the MACD histogram are contracting, indicating the MACD line (difference between 12-day and 26-day EMA) moves toward the MACD signal line (9-day EMA of MACD), likely to form a bearish crossover.
Traders often view bearish crossovers as a sell signal.
As the downtrend continues, SOL price would likely drop to test support near $10.2. Moreover, breaching below immediate support might push the Solana token to $8.6 before the SOL price recovers.
Conversely, an uptrend would result in SOL price targeting resistance from its 20-day EMA (red wave) near $12.4. Furthermore, a break and hold above immediate resistance might help the Solana token reach $14.5 before downside corrections pare gains.
