Solana (SOL) Records Surge In New Active Addresses, But Onchain Activity Takes A Dive

2023-5-23 22:00

The Solana (SOL) blockchain has recently witnessed a divergence in its on-chain activity and the number of new addresses joining its network. Despite an impressive surge in new addresses, SOL’s on-chain activity experienced a decline during May.

Meanwhile, the asset’s price has also mirrored its on-chain activity as SOL has been in a downtrend in the past week, down by nearly 10%.

On-Chain Activity Defies New Address Metrics

As of this month (May), Solana demonstrated growth in its user base, with 5.4 million new addresses joining the blockchain. This surge represents the highest number of new addresses added since October 2022, hinting at a surge in interest in the Solana blockchain.

Typically, a surge in new addresses suggests strong fundamentals for a blockchain, reflecting growing adoption and community engagement.

However, while Solana experienced a surge in new addresses, its on-chain activity declined during the same period. Data from The Block, a prominent blockchain analytics tool, reveals that the on-chain activity on the Solana network dropped in May, contrasting the influx of new participants.

On-chain activity refers to the transactions, smart contract interactions, and other operations occurring on the blockchain. The decrease in on-chain activity raises questions about the factors influencing Solana’s blockchain’s overall engagement and usage and why growth in activity has failed to impact its price positively. 

Unique Circumstances For SOL

Solana’s situation is unique due to the divergence between the increasing number of addresses and the decline in SOL’s price. While new addresses often correlate with positive growth indicators for cryptocurrencies, SOL’s price experienced a more than 10% drop since the beginning of May.

Starting the month at $21.71, SOL’s price currently trades at $19.68. Over the past week, the asset has plummeted by 8.2%. SOL has dropped from a high of $21.38 seen last Monday to trade below $20 at the time of writing. 

Solana’s market capitalization has also plunged in the past seven days. SOL’s market cap has fallen nearly 10% from a cap high of $217 billion to a high of $8.4 billion last Monday. Meanwhile, its daily trading volume has surged in the past few days.

From $100 million and $150 million a few days ago to nearly $300 million in the last 24 hours. The unique decoupling between Solana’s new address growth and price performance caught the crypto community’s attention. 

Notably, Several factors could contribute to Solana’s contrasting trends. Market dynamics, investor sentiment, and external market factors may have influenced SOL’s price decline.

Additionally, while the surge in new addresses indicates growing interest, it is crucial to consider the nature of these addresses. Analyzing the activity associated with the new addresses, such as trading or long-term holding, could provide further insights into the situation.

Featured image from Shutterstock, Chart from TradingView

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Time New Bank (TNB) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.01 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Цена в час новости $ 0.0020147 (-100%)

new addresses activity sol surge solana on-chain

new addresses → Результатов: 126


Number of Bitcoin addresses holding 0.01 BTC hits a record high, As DigiToads on track to be the most successful presale of the decade

The crypto industry has greatly contributed to the growth of the world’s financial market, as new and old cryptocurrencies with promising growth potential provide investors with great profits. Recently, revolutionary events involving Bitcoin (BTC) and a new cryptocurrency called DigiToads (TOADS) have taken the crypto world by storm. Bitcoin is one of the biggest DeFi […]

2023-5-14 00:00


Фото:

Bitcoin addresses take an extreme nose dive

Bitcoin's record transaction counts due to the rise of BRC-20 tokens have revealed an intriguing anomaly: a negative correlation between transactions and active/new addresses. As these addresses hover around the 365-DMA, it begs the question: what's causing this unusual disconnect between transaction counts and address activity? Find out the hidden factors at play, and uncover how this could impact the future of the crypto market.

2023-5-8 15:30