Solana's on-chain data does not present a positive picture for this rapidly growing L1 blockchain network. Several key metrics have experienced a decline over the past few days.
Despite this, the SOL price is showing relative resilience, rising 3% today and currently trading around $135. Let's analyze these metrics to determine if they indicate a cause for concern for Solana holders.
Solana's New Accounts and Active Wallets
According to Solscan's data, the number of active wallets has dropped to approximately 3 million today. In comparison, just a few days ago, active wallets exceeded 5 million. Notably, SUI's network, with a significantly smaller market cap, had over 1 million active wallets recently.
This disparity could be concerning, as Solana boasts a market cap roughly 20 times larger than SUI, yet this metric is now just 3 times higher.
It's worth noting that Solana's 5+ million active accounts yesterday represented a 3-month high. Throughout the summer months, active wallets generally hovered around 1 million daily.
However, the number of new accounts created has declined compared to the summer. Over the past 3 months, July saw over 20 million new accounts, while in September, that number has ranged between 8 and 11 million.
The number of transactions has also experienced a gradual decline over the last 3 months, fluctuating between 250 and 300 million daily.
Additionally, Solana's leading decentralized exchanges, Jupiter and Raydium, have witnessed a decrease in active users within the past 24 hours. Specifically, Raydium has reported over 40% fewer users compared to the same time yesterday.
Should These Metrics Concern Solana Holders?
The recent decline in on-chain metrics may raise concerns among Solana traders, but it's essential to consider these numbers in context.
Solana has experienced significant growth over the past year, and it is typical for any blockchain network to exhibit some fluctuation in user activity.
The decrease in active wallets and new accounts could stem from various factors, such as market conditions, seasonal trends, or temporary shifts in user behavior. To gain a clearer understanding, it's crucial to monitor these metrics over a more extended period.
Solana's robust ecosystem and ongoing development efforts suggest that the network retains significant potential for growth and adoption.
CaptainAltcoin's team will continue to track Solana's performance and on-chain metrics, providing updates on any noteworthy changes.
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