Solana, which Turkish crypto investors also include in their portfolios, was one of the projects that received the heaviest blow from the collapse of FTX. Now, Solana has lost two NFT projects to Polygon and Ethereum. Therefore, a crypto analyst predicts a mass migration of projects from the ecosystem of the Solana network. Such negative developments are also reflected in the altcoin price. Analysts claim further value losses for the altcoin.
“Solana faces project migration!”
Leading altcoin EthBinance CEO Speaks For This Altcoin: Big Exit Has! As esteemed competitor of ereum, Solana may witness an increase in the number of projects leaving its ecosystem. Crypto experts say DeGods and y00ts could be followed by other NFT projects in 2023. In this midst, the altcoin price outlook remains bearish for Q1 2023. Web3 infrastructure ecosystem Solana has seen 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. The new residence of the projects in question was Solana’s rivals Ethereum and Polygon.
Crypto expert Bitboy mentions that more NFT and crypto projects will soon leave the Solana ecosystem. Because, two of the smoothest performing Non-Fungible Token (NFT) projects have said goodbye to the ecosystem. The analyst assumes that more projects will feel the need to switch to competing blockchains like Ethereum.
Solana has experienced several outages throughout 2022. Therefore, projects on the network have suffered from it throughout the year. Combined with the declining developer activity on Solana Blockchain, it is possible that these factors are driving more projects out of the ecosystem. In this context, Bitboy shared the following:
I’m sorry if that hurt your feelings. However, this is a fact. More NFT and crypto projects will leave Solana.
Altcoin price outlook remains bearish in 2023
Crypto analyst Ekta Mourya takes a look at SOL’s technical photo. According to the analyst, losses are at the door if SOL fails to break out of the bear trend. The analyst continues his evaluations in the following direction. According to the chart below, the altcoin is currently trading below the 200-day (blue line), 50-day (orange line), and 20-day (green line) Exponential Moving Averages (EMA). SOL needs to make a comeback above the EMAs and break out of its several-month divergence to benefit its holders.
The chart above shows that a downward move has evenly erased Solana’s gains from the ongoing downtrend. The altcoin is at risk of falling to its monthly base level of $10.94 if the downtrend continues. A close above the trendline is likely to invalidate the bearish thesis. This probably indicates that the trend is turning on the contrary in the altcoin.