Solana is awesome. They just had their fate more inextricably intertwined with FTX than most, but they’re gonna be around and be a part of web3. They’ll keep investing in the space too, we’ve lost some deals to their team, so I know they’ve got a killer BD team and mentality.
— Ryan Wyatt (@Fwiz) December 27, 2022
How It Started
It all started when DeGenerate News, an NFT news outlet on Twitter, posted a picture of a Telegram message claiming that Polygon is growing its non-fungible token (NFT) ecosystem by collaborating with Solana-based NFT projects.
Wyatt responded to the tweet, mentioning that it was not a new move. He added that his company has reached out to several projects existing on different blockchains as part of its marketing efforts.
In a subsequent tweet, the Polygon Studios’ boss noted that his company needs “a vibrant existing user base for people to plug into when investing.” When a Twitter user suggested that Wyatt could be referring to Solana, the Polygon Studios’ boss declared his view of Solana.
The Polygon CEO acknowledged that his team had lost some business deals to Solana in the past. According to Wyatt, the problem with the Solana business is attributed to its connection with the currently collapsed crypto exchange, FTX.
Is Solana Facing an Ecosystem Shrink?
Solana has records of network outages. The most recent of them occurred in October. These downtimes are bad business for the blockchain, as transactions fail to process while the issue is yet to be resolved.
This has likely triggered a chain of events that led top platforms on Solana to explore other blockchains. Leading Solana-based NFT marketplace Magic Eden, for example, announced its integration of the Polygon blockchain in November, reducing its dependence on the Solana network.
Phantom, a top Solana-based self-custodian wallet provider, made a similar move that same month.
Coinfomania reported yesterday that three top projects existing on the Solana network would be moving to other blockchain networks. Two of these projects, NFT collection y00ts, and utility token DUST, will migrate to the Polygon network.
As Wyatt stated, Solana’s ties with the former crypto billionaire and FTX founder, Sam Bankman-Fried, have affected its business. Since the fallout of FTX, the price of SOL has dropped by 70%. Currently, 1 SOL is traded at $10.9.
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