The migration of y00ts NFT collection to Polygon has caused a significant decline in trading volumes on Solana blockchain. The migration, initiated soon after the announcement from DeLabs Studios on December, saw over 70% of the holders move their collection to the layer 2 blockchain of Ethereum. In an attempt to motivate the movement, holders were promised rewards such as 5 USDT and fullrefunds of network costs, with the total value of collection amounting to $36 million.

The monumental shift of NFTs has served as a major disruption to the growth of Solana's NFT industry. Before the migration, there were high expectation that the blockchain could soon overtake Ethereum as the leading platform for NFTs. This was due to its lower transaction fees and higher scalability. However, numerous technical issues have made it difficult for Solana to meet the expectations of users.

Moreover, a bankruptcy of FTX and Alameda Research, which have heavily supported the project, have led to further losses for investors. Such losses have spanned across network outages and processing problems, all creating a lethargic environment for NFTs.

At the same time, the emergence of layer 2 solutions have made Ethereum a more efficient platform for users, allowing them to deploy their NFTs at lower fees. This development has been given further momentum by the likes of Nike and Starbucks, that have opted to use Polygon as the foundation for their projects.

The development of the NFT industry serves as a major turning point in the cryptocurrency world. Whilst Ethereum remains the undisputed leader of the sector, Solana had been lauded as the major disruptor due to the unique features it presented. Despite incessant efforts, the blockchain has been unsuccessful in dethroning Ethereum. Such a situation reiterates the fluid and disruptive nature of the cryptocurrency markets and the significance of finding solutions to technical issues.



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