Solana Daily Active Addresses Plummets – What Could it Mean?

As the crypto market bearish trend persists, Solana has shown more strength than some of the top crypto assets, but there’s a new discovery that may be of concern. The number of daily active addresses on the network has declined sharply.

According to a trader’s analysis, the addresses have dropped consistently from January to this time, losing roughly 5 million. This is a concern because the drop in the number of active addresses is significant and could be pointing to something even more serious. 

Number of Active Addresses Falls Despite Solana Popularity

Solana is one of the crypto networks that have grown in popularity and other metrics recently. Because of its speed and scalability, the network has attracted many users, which has resulted in its revenue growth that is set to beat Ethereum in 2025. The decline in the number of active addresses is therefore unexpected.

However, one explanation for it could be the prevailing weakness in the general crypto market. The market has seen a general drop in momentum, leading to weak price performances in nearly every crypto asset. For Solana, it has failed to flip a key resistance into support that could propel it to $135, so the chances of dropping to $118 is much higher.

Currently, the asset is trading at $123 and as the market momentum continues to worsen, could go even lower in the near-term. The continuous drop in the number of active addresses could soon lead to this drop as investors continue to lose confidence. Some analysts had predicted that the asset would drop to extremely low prices but it has managed to hold up.

This shows strength but a continuous weakening of the network through active address count may ultimately cause serious damage to the network and eventually the price of the asset.

Weakness Seen in Other Assets

Other assets have shown this weakness in the number of active addresses on their networks as well. Bitcoin for example has seen a steep drop in the active address count to its lowest level in a year, suggesting that fewer people are transacting.

According to CryptoQuant, this decline suggests a slowdown in the market. Since Bitcoin usually dictates the tone for the rest of the market, it isn’t surprising that the effect has spread to Solana and could affect more assets.

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