In 2023, two of Solana’s most popular and valuable NFT collections, y00ts and DeGods, will cease to exist, causing a significant setback for its NFT ecosystem.
The y00ts collection is nearing completion of its migration to the Polygon , while DeGods is in the process of migrating to Ethereum. In the last 30 days, Solana’s total NFT sales volume increased by 31%, but the number of NFT trades decreased by more than 8%, according to CryptoSlam.
It remains to be seen what effect the absence of these collections will have on the second-largest market for non-fungible tokens in the cryptocurrency space.
Popular NFT collections exit Solana
Despite these obstacles, the Solana network has introduced a game-changing technology that may in the future attract the NFT community.
Using its state compression technology, the Solana Foundation intends to reduce the cost of blockchain-based NFT storage.
Compressed NFTs are similar to traditional NFTs, except that the cost of minting is significantly reduced. According to Solana, minting a million uncompressed NFTs currently costs over $250,000 on the chain, while using compressed NFTs will cost only $113, almost a fraction of the original cost.
State compression technology is already utilized by applications in the Solana ecosystem, including Dialect and Crossmint.
According to Token Terminal, the number of daily active users on the network has increased by 14% over the past ten days.
However, despite the expanding number of users, there was no significant increase in trading activity as transaction fees remained low.
The price of Sol has increased marginally over the past week, settling at $20.45 as of press time.
The decrease in trading volume may account for the modest increase. However, the increase in development activity is a positive indicator that could bolster investor confidence in Sol.