Former BitMEX CEO Arthur Hayes, whose predictions are closely followed, talked about the altcoin, which lost 80% after the bankruptcy of FTX.
Arthur Hayes says altcoin project is worthless now
The giant forecaster made various claims about Solana in his statements on Twitter on December 28. Hayes says Solana is now truly “an absolute shitcoin.” However, he suggests that the FTX-linked altcoin project will still see demand again. According to the crypto analyst, if the mainstream media continues to cover with news about Solana, we will soon see a buying spree.
Even though $SOL is a complete and utter shitcoin, at some point it will be a buy if the mainstream financial press is dunking on it. Like on the <TOP> news section.
Nothing ever goes up or down in a straight line. pic.twitter.com/3BFPcJhzPF
— Arthur Hayes (@CryptoHayes) December 28, 2022
Is Solana on the brink of collapse?
Solana was one of the leading ecosystems, especially in the NFT market. After FTX’s bankruptcy, its reputation was completely destroyed. Recently, DeGods and y00ts, one of the largest Solana-based NFT projects, started the migration in the NFT sector by announcing that they are planning another move. DeGods announced on December 26 that it will build a bridge to Ethereum in the first quarter of 2023. However, y00ts, which is part of it, plans to migrate to the Polygon network. The reason for this switch to different Blockchains has not been officially disclosed. cryptocoin.com We have included some of the details in this article. Founder Frank’s statements were as follows:
Nike, Adidas, Starbucks, Disney, Shopify, NFL, TicketMaster, Reddit, Instagram, Facebook, Prada, Dolce & Gabana, FlipKart, Coca-Cola, Adobe, Bentley, Stripe, Draft Kings, 100 Thieves, and that's just a few.
I think that the @y00tsNFT brand just got stronger.
But let's see ?♂️
— Frank III (@frankdegods) December 26, 2022
On the other hand, it is predicted that the transition to different networks will help diversify projects. It also helps these projects maintain their base prices. As these projects are the largest collections of NFTs in the Solana network, they could cause problems for Solana’s NFT growth. Dune Analytics data shows that the number of Solana NFT transactions decreased after peaking in late November.
The number of transactions may decrease further after the DeGods and y00ts NFT collections are migrated.
However, networks like Polygon will be able to profit from the migration wave. As such, they quickly close the gap with Solana, the leader in NFT. In particular, Polygon completed a number of high-profile partnerships throughout the year. Reddit, Instagram, StarBucks, Meta, Disney were among these brands.
If Polygon manages to host the y00ts collection, it will become a contender for the top spot in terms of NFTs. Although this transition development seems like good news for Polygon, Solana investors may be adversely affected by this development in the long run.
Altcoin market stagnation pushes Solana price to new lows
Solana price dropped below the $10 level for the first time today. The altcoin, which was once among the top 10 by market cap, was hovering around $35 until the FTX bankruptcy in November. It is currently trying to protect $10, which it briefly fell under during the day. This level is just 5x away from the ICO price.