- Despite seeing more transaction activity and wallets, Solana’s trading volume fell by 14.84% last month.
- While Solana has sound events happening on-chain, its performance in the market continues to weaken.
- Because SOL’s price is not rising, many investors are flocking to Ethereum and Polygon.
Even though Solana (SOL) has seen higher levels of user activity and transactions recently, the token’s rise to $200 is slowing down. Even though Solana’s network has seen active users increase over the past six months, the SOL token hasn’t maintained an upward trend.
Despite Solana’s Performance, Investors are Starting to Trade with Less Optimism
The weekly trading activity on this network decreased by 14.84% which was much lower than what several competing blockchains experienced.
Source: DeFiLlama
Solana, according to data, handled over $2.144 billion in trading activity within the last 24 hours and $22.77 billion over the previous week. It also holds almost 12.71% of the DEX volume, but the fall in activity suggests trader and investor caution, particularly with the shift in the broader crypto market mood.
On-Chain Metrics Don’t Always Match How Markets React
Surprisingly, the core structure of Solana’s network is holding up well. With $9.205 billion currently locked into DeFi, it seems that liquidity providers and DeFi users are still interested.
Furthermore, transactions over the network have totaled 3 billion in the last 30 days, proving that activity hasn’t stopped on the blockchain.
Source: Nansen
At the same time, on-chain data demonstrates that this network has handled a large number of transactions daily, each in the 50–70 million range in recent times and the rise in May was significant. The number of failed transactions has not seen much change, suggesting the network does a pretty good job.
Besides, the number of daily active addresses—an indicator of real engagement—recovered from its dip in April and is now regularly above five million. Experts often see this increase in active wallets as an indicator of increased user participation.
Source: Nansen
Market Is Still Watching for Signs of Solana’s Recovery
Despite increasing use, Solana isn’t performing well because other aspects aside from its technology, like speculation, macroeconomic issues and how investors perceive short-term success, seem to affect it. Other networks such as Ethereum and Polygon, have posted stronger growth over the past week.
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