Solana

Sharp

<ul>
 <li><strong>In August 2024, Solana recorded the fewest active addresses of the year and a steep decline in DEX volume.</strong></li>
 <li><strong>Solana’s daily earnings plummeted to their lowest level in the past six months.</strong></li>
</ul>
<p>The <a href="https://www.ethnews.com/dogen-sees-large-inflows-after-capturing-huge-interest-from-solana-memecoins-holders/" rel="noopener noreferrer nofollow">Solana</a> network, renowned for its efficiency in executing smart contracts, faces a significant challenge. In August 2024, the lowest activity levels of the year were recorded, indicating a decrease in usage and dwindling interest in the network. Particularly notable is the significant decline in the number of active addresses and the trading volume on decentralized exchanges (DEX).</p>
<h2 id="decline-in-network-activity">Decline in Network Activity</h2>
<p>A review of the statistics highlights the situation: The number of active addresses fell from over 54 million in July to 18 million in August—a drastic reduction suggesting reduced participation in the network. This decrease could be attributed to several factors, including the potential migration of users to other blockchain platforms or a diminished interest due to market dynamics.</p>
<p>The daily earnings within <a href="https://www.ethnews.com/technical-parallels-in-market-move-experts-bet-on-solana-meme-coins-dogen-wif-and-bonk-surge/" rel="noopener noreferrer nofollow">Solana</a> also took a hit, falling from ranges between $200,000 and $300,000 in previous months to levels last seen in early March 2024. This drop in earnings was not an isolated incident but part of a trend observed since the end of July 2024, where the revenue began to decline after a period of volatility and sideways movement that ended in May.</p>
<p>Moreover, the reduction in active addresses has inevitably led to fewer daily transactions and a reduction in network fees, contributing to the aforementioned decline in network earnings. It’s also worth noting that in August 2024, Solana saw the lowest number of new active addresses of the year, with only 11 million new activations compared to the previous month.</p>
<p>On another note, another parameter reflecting the current lack of market interest in the Solana ecosystem is the decline in trading volume at decentralized exchanges. In this case, this metric also shows a decline from the beginning of August to date.</p>
<p>On August 4, 2024, <a href="https://www.ethnews.com/could-solanas-new-staking-tokens-end-ethereums-dominance/" rel="noopener noreferrer nofollow">SOL</a> DEX transactions reached a value of $3.5 billion, while this number dropped to $700 million just yesterday. This decline in trading activity suggests a broader trend of decreased engagement with the Solana network.</p>
<p>In conclusion, a decrease in active addresses, transactions, DEX operations, and earnings within the network indicates a concerning impact on the state and acceptance of a blockchain network. However, it should be noted that networks undergo cycles of greater or lesser acceptance and phases where they attract more or less user interest. Thus, this lack of activity may not necessarily be due to a lack of interest from the community but could also mean that users are possibly waiting for the ideal time to engage with the network.</p>
<div class="cryptoboxes" id="mcw-12347" data-realtime="on">
 <div class="mcw-chart mcw-chart-light" data-font="inherit" data-chartcoin="SOL" data-chartcurrency="USD" data-chartrate="1.000268" data-charttype="chart" data-chartview="day" data-charttheme="light" data-chartsmooth="true" data-chartareacolor="" data-chartbgcolor=""></div>
</div>
<p>The post <a href="https://www.ethnews.com/sharp-decline-solanas-activity-hits-yearly-low/" rel="noopener noreferrer nofollow">Sharp Decline – Solana’s Activity Hits Yearly Low</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.</p>

Sharp Decline – Solana’s Activity Hits Yearly Low

Table of Contents

ETHNews

Other articles published on Sep 4, 2024

Common European Data Spaces: Fostering Data Innovation & Collaboration in the EU

‘The crypto voting bloc is not voters’: Political scientists debate election impact

Bitoro to launch Perpetual Futures ‘ZK Chain’ to Enhance Liquidity

Ex-Mt. Gox CEO Karpeles Launches EllipX in Europe

Avalanche Foundation Announces infraBUIDL() Program to Boost Blockchain Tooling and Infrastructure

How to buy $AKITA and $HACHI on Uniswap

Join our free newsletter for daily crypto updates!