Solana Ecosystem May See Mass Exodus of NFT Projects Heading to Ethereum and Polygon, Here’s Why

• Solana recently lost two NFT projects, y00ts and DeGods, to the Polygon and Ethereum networks, according to recent announcements.
• Cryptocurrency expert Bitboy has predicted a mass exodus of projects from the alternative Ethereum network ecosystem.
• The Solana price is in decline and the altcoin is at risk of further losses as it trades below the 20, 50 and 200-day exponential moving averages.

Solana, a competitor to Ethereum may witness an increase in the number of projects leaving the ecosystem. Crypto experts believe the exodus of DeGods and y00ts may be followed by other NFT projects in 2023. The price outlook for Solana remains bearish for Q1 2023.

Also read: Bitcoin price volatility alarmingly low, $16,500 is the key liquidation level for BTC

Solana will meet NFT projects that are going out the door for Ethereum and Polygon

Solana, the web3 infrastructure ecosystem has noted a sharp decline in active developers in its ecosystem. Leading digital collectibles projects DeGods and y00ts recently announced that they are leaving the Solana network for Ethereum and Polygon.

Crypto expert Bitboy is convinced that several NFT and crypto projects will soon leave the Solana ecosystem. As two of the top Non-Fungible Token projects leave the ecosystem, Bitboy predicts that more teams will feel the need to migrate to competing blockchains like Ethereum.

Solana experienced several service interruptions during 2022, and projects on the network have been exposed to interruptions during the year. Coupled with the declining developer activity on the Ethereum-killer blockchain, these factors could drive more projects out of the ecosystem.

Bitboy tweeted:

I’m sorry if this hurts your feelings… but these are facts. Several NFT and crypto projects will leave Solana.

The price outlook for Solana remains bearish in 2023

Solana could extend losses if SOL fails to break out of its downtrend. Based on the chart below, Solana is currently trading below the 200-day (blue line), 50-day (orange line) and 20-day (green line) exponential moving averages (EMA). The Ethereum alt token needs to make a comeback above the EMAs and break out of its multi-month downtrend to bring gains to its holders.

SOL/USDT exchange rate chart

The chart above shows that a bearish engulfment has wiped out Solana’s gains consistently in the ongoing downtrend. The altcoin risks falling to the monthly low of $10.94 if the bearish thesis holds. A close above the trendline could invalidate the bearish thesis and signal a possible trend reversal in the altcoin.