Solana (SOL) Network Activity Poised to Hit 2024 Record Lows

By admin On Aug 23, 2024

The month has been marked by a drop in demand for the Solana (SOL) network. As August nears its end, the Layer-1 (L1) network has reached its lowest point in terms of transaction and active address count for the entire year.

This decline in usage has impacted network fees and revenue, which have plummeted by more than 50% over the past month.

Solana’s Users Bid It Goodbye

So far this month, the number of unique addresses that have signed transactions across Solana has totaled 18.09 million. This is a 67% decline from the 54.33 million monthly active users recorded in July and a 16% drop in active usage year-to-date (YTD).

As for unique first signers on the network, their count has also dropped. According to The Block’s data dashboard, the number of new users on the Solana network this month stands at 11.1 million, a 66% decrease from the YTD high of 33.15 million recorded in new user count in July.

This drop has occurred despite the recent hype around Pump.fun, the Solana-based meme coin creation platform.

Solana New Address Count. Source: The Block

Due to the drop in the number of users on Solana, the transaction count on the L1 has also plummeted. Since the beginning of the month, non-vote transactions on the network have totaled 486.61 million, the network’s lowest since the year began.

Non-vote transactions on Solana refer to any transaction on the network that does not directly involve voting for block producers. They are transactions involving token transfers, staking and unstaking, NFT sales, etc.

With reduced activity on Solana this month, network fees and revenue derived from the same have been impacted. Artemis’ data shows that these have plunged 62% in the past 30 days.

Solana Network Fees and Revenue. Source: Artemis

SOL Price Prediction: Coin Consolidates Within a Range

At press time, SOL trades at $145.58. Since August 12, the coin has trended sideways, facing resistance at $152.12 and finding support at $137.65.

This relative balance between the buying and selling pressures in the market is evidenced by SOL’s flat Relative Strength Index (RSI). This indicator measures an asset’s oversold and overbought market conditions. When it flattens, the market is in consolidation.

Solana Price Analysis. Source: TradingView

If SOL breaks above the resistance line and successfully retests it, its value may jump by 10% to trade at $160.09. However, if selling pressure gains momentum, it may fall below support to trade at $133.64.

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