The proof-of-stake network Solana (SOL) has significantly surpassed Bitcoin (BTC) in the number of daily active users last week. What are the consequences of the recent activity in the popular cryptocurrency network? Here are the details!
Increase in Active Users on Solana
According to an analysis based on data from the cryptocurrency analytics firm Artemis, Solana’s active user base surpassed one million for the first time in over a month on January 26th. On the same day, Bitcoin’s daily active addresses dropped to 597,000. The daily number on January 26th was 26.39 million, surpassing other networks.
To measure the sense of dominance, the second-ranked Tron (TRX) recorded approximately 4.59 million transactions on the same day. The sharp increase in Solana’s network activity was likely due to the growing demand for decentralized exchanges (DEX). Additionally, using data from DeFiLlama, it was noted that Solana has seen significantly higher DEX volumes in the last three months following the lowest levels of the 2022-23 bear market.
Price Increase in SOL
While December witnessed the highest monthly DEX volume on the network to date with $28 billion, $18.8 billion in transactions were seen in January as of the time of writing. The healthy developments on the network side have started to reflect on the price of the cryptocurrency network SOL. According to 21milyon.com, the fifth-largest cryptocurrency by market cap has seen a 4.48% increase in the last 24 hours, raising its weekly gain to 4.23%. However, SOL’s performance in 2024 so far does not resemble the last quarter of 2023.
The token saw a five-fold price increase in the fourth quarter of 2023, surprising the market, but has since fallen by 17% from the beginning of the year to the time of writing. According to an analysis of Hyblock Capital data, the current market sentiment for SOL has shifted from greed to neutral. The short and medium-term expectations for SOL depend on the demand from buyers in the market, and therefore more traders should have shown interest in purchasing the asset at the time of writing.
