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

Name	Symbol	Market	Market Cap ($)	Algorithm
TRON	TRXUSD	Crypto	10,476,256,924	Not Mineable

Name

Symbol

Market

Market Cap ($)

Algorithm

TRON

TRXUSD

Crypto

10,476,256,924

Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	0.000374	0.32%	0.119015	0.118991	0.119026

Price Change

Price Change %

Current Price

Bid Price

Offer

0.000374

0.32%

0.119015

0.118991

0.119026

High Price	Low Price	Open Price	Prev. Close	52 Week Range
0.119015	0.11834	0.118641	0.118641	- - -

High Price

Low Price

Open Price

Prev. Close

52 Week Range

0.119015

0.11834

0.118641

- - -

Exchange	Last Trade	Size	Trade Price	Currency
KRKN	03:21:12	394.13	0.119015	USD

Exchange

Last Trade

Size

Trade Price

Currency

KRKN

03:21:12

394.13

0.119015

USD

Price x Volume	Volume	Base Symbol	Related Pairs
11,340.79	95,553.06	TRX	TRXEUR	TRXGBP	TRXBTC

Price x Volume

Volume

Base Symbol

Related Pairs

11,340.79

95,553.06

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

22/05/2023 8:00pm

NEWSBTC

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. Related Reading: Billions Of Dollars Tokenized Bitcoin Moved To Ethereum, BSC, And Solana 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. Related Reading: Solana Co-Founder Pitches New Way Of Meme Coin Distribution 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

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