Solana Records New Monthly User High Amidst Persistent Price Drop

Solana (SOL) has had a turbulent time lately evident with a consistent decline in its market price. According to data from CoinMarketCap, the “Ethereum Killer” is down by 6.36% on its weekly chart, emerging as the biggest loser among the top 10 tokens. 

Interestingly, this price dip depicts the larger negative performance of SOL in which it has lost 24.61% of its value in the last month. However, amidst this mayhem, the Solana network has hit a significant milestone which may spark some excitement for investors.

In an enthralling development for SOL enthusiasts, data from blockchain analytics platform Artemis shows the network has attained a new peak of 30 million active addresses (users). This development was shared on X on Friday by the data analysis handle SolanaFloor.

BREAKING: Monthly active addresses on @Solana surpass 30 million, a new all-time high. pic.twitter.com/F9ujQE2OiC

— SolanaFloor (@SolanaFloor) June 21, 2024

After reaching the 25 million mark in 2022, the  Solana blockchain experienced a steep decline in monthly active users going as low as 5 million in 2023. However, the smart contract platform has appeared rather attractive in 2024 with a steady rise in monthly users throughout the year so far. 

In the crypto ecosystem, the importance of growth in network users stems mainly from an indication of growing market confidence from investors, which is quite vital considering SOL’s current price dip.  For the fifth largest cryptocurrency, this rise in the active addresses is likely due to the current hype around Solana meme coins – a $5.65 billion ecosystem that has provided investors with an avenue of recording insane trading profits. 

In addition, an increase in network users can also translate into larger liquidity, more stable network security, and the development of more use cases, all of which are important features in attracting further investment and boosting a token’s value.

At the time of writing, SOL trades at $133.36 following a 0.34% decline in the last day. Furthermore, the token’s daily trading volume is down by 6.81% and valued at t $2.19 billion.

For Solana, the bulls face strong resistance at the $151 price zone. If the buying pressure proves sufficient to push through this region. SOL could return as high as $190 over the next few weeks. However, a rejection at this zone could result in a further decline in the token’s price reaching as low as $120.

All traders are reminded to perform due diligence before engaging with the cryptocurrency market.