DeGods is a high-profile project of Solana NFT that has more than 10 times the rise because to its creative gaming mechanism. It also has one of the strongest communities in the Solana NFT ecosystem.
However, the entire Solana ecology is now impacted and DeGods has not been spared because of the strong connection between the Solana ecosystem and FTX. Its floor price has decreased by more than 70% since the FTX event, and "escape" from Solana to other public chains has become a crucial part of its planning.
No of the number of users, the amount of transactions, or the liquidity, Ethereum has consistently held a decisive advantage and is the top choice for NFT developers. So it's hardly shocking that DeGods switched to Ethereum.
Its second-generation project, y00ts, selected Polygon instead of following in the footsteps of DeGods, which is unexpected. Because Polygon's security is still in its infancy compared to Ethereum's and does not have a very robust NFT ecosystem. Why did y00ts choose this course of action?
The way Polygon approaches NFT layout
Polygon has a very long view when it comes to NFT layout.
It first became one of Opensea's earliest integrated public chains outside of Ethereum. It drew many of NFT customers because of its affordable price and quick transaction experience. It once reached or even surpassed Ethereum's transaction volume, becoming the second-largest NFT user base. ecology.
Later, Polygon Studios was founded with the intention of extending the chain game and NFT realm. Over 36 projects have received investment so far. The Polygon chain is nearly often used for the deployment of these projects.
Despite being in a bear market, all parts of Polygon's data decreased, and the NFT market was not as active. However, Polygon also anticipates new developments and accelerated collaborations with Web 2 and conventional companies. In the recent months, Polygon has drawn a lot of recognizable brands and has already partnered with leading companies like Coca-Cola, Starbucks, Draftkings, Meta, and others.
Reddit's NFT series Reddit Collectible Avatar, produced by Polygon, was one of them and quickly hit a high transaction volume, eventually accounting for 25% of the total mainstream market transaction volume. The overall number of Reddit Collectible Avatars has surpassed 7 million, and there are currently more than 5 million holding addresses.
With more than 1.5 billion registered users, 430 million monthly active users, and 52 million daily active users, Reddit is a significant Web2 online platform. Despite the fact that Reddit NFT holds less addresses than its daily active users, this effort will not only encourage other Web 2 firms to follow suit and develop fresh narratives about NFT, but it will also help Polygon grow its user base and increase liquidity.
The founder of DeGods, Vora, added that one of the factors in their decision was Polygon's active association with well-known businesses.
Also, Polygon Manages to Grasp Star Power
During the most recent NFT bull market, we saw how the star effect's strength not only increased genuine traffic to NFT but also significantly impacted its price. Star effects are mostly focused on its celebrity in entertainment media and other industries because NFT has its own cultural and entertainment characteristics. This time, NFTs of former US President Trump were released by Polygon.
It has been done before to use political and business celebrities to spread NFT, like in the cases of Musk's ELONGATE and Twitter founder Jack Dorsey's tweet NFT. Even still, these NFTs' sales are not quite great.
The Trump NFT, on the other hand, was once at the top of the Opensea 24-hour trading list and sold out within 6 hours of its debut. In the week following the debut of NFT, over 332,000 users created NFT on Polygon, according to Nansen data. As a result, Polygon's average daily transaction volume has surpassed that of BNB Chain.
In order to acquire momentum during the initial hype cycles, Polygon made use of precisely these advantages. According to data, there have been more over 960 million transactions on the Polygon chain, and 778,000 smart contracts have been implemented by 234,000 contract developers. The Polygon blockchain has over 202 million unique addresses as of December 26.
Support for Polygon is Announced by Major Projects on Solana
Major Solana ecosystem projects had already declared support for Polygon prior to y00ts. For instance, Phantom, a single-chain wallet that was initially devoted to Solana, announced support for Ethereum and Polygon to increase the range of services it offers and formally transitioned to a multi-chain wallet.
Additionally, Magic Eden, the biggest NFT market in the Solana ecosystem, declared that it would merge with Polygon and introduce its Launchpad and Marketplace there first in order to promote the Polygon chain's ecosystem of game developers and producers.
Given that all of these announcements were made over a month ago, we assume that y00ts had been preparing for at least that long. The transition from wallets that accepted Polygon NFTs to the integration of Polygon's NFT marketplace appears to be easing the y00ts' migration.
Is Polygon Good Option?
Despite recent success, y00ts has a lot of reservations about switching to Polygon.
First and foremost, there are technical issues with Polygon, such as the 11-hour network outage in March caused by a node failure and the loss of user cash as a result of gaps in the Polygon PoS formation contract.
Whether it serves as the best security bottom layer. However, Polygon has also launched the last phase of the zkEVM public test network it introduced in October of this year. The primary network will soon be activated, and the official statement claims that this technology may greatly enhance Polygon's transaction volume per second. It may also be seen as a technological advance for Polygon.
Second, there are speculations that y00ts chose to relocate to Polygon as a result of their $5 million request from the Solana Foundation being denied; as a result, they decided to take money from Polygon. A grant from the fund of its partners, which will support Polygon's payment for one year, is being used. Frank III, the founder of Degod, has refuted allegations that he requested money.