The post Solana Leads in Capital Inflows Despite Declining Activity as Chain Competition Intensifies appeared on BitcoinEthereumNews.com.

May has been a month of mixed blessings for Solana. While the network saw a major inflow from centralized exchanges, to the tune of $1.1 billion—that’s the most since 2024; its on-chain transaction activity keep declining. Now, two key things here: 1. The inflow is a sign that investor interest is on the uptick, at least. 2. The fact that transaction activity on the chain is going down in spite of this inflow signals a divergence between investor interest and network utility that is rarely seen. 🚨BREAKING: @Solana saw an inflow of $1.1 billion from centralized exchanges in May alone, the largest monthly inflow since 2024. pic.twitter.com/Fh9eIZkBIx — SolanaFloor (@SolanaFloor) May 27, 2025 And from where I’m sitting, that ain’t great. Solana Sees Historic Inflows Amid Transaction Decline In May, Solana drew in an astonishing $1.1 billion in capital from centralized exchanges, cementing its status as a go-to blockchain for institutions and retail investors. This figure represents the highest monthly inflow recorded since 2024 and occurs during a period when the entire crypto sector seems to be favoring high-throughput, low-fee chains. Even with this strong indication, Solana’s transaction volumes tell another tale. Per the data of OKX Explorer covering May 18 to 24, Solana carried out 2.37 billion transactions, down 8.24 percent week-over-week. This was the third week in a row of Solana having less “activity.” Even though this statement does not carry a good connotation, it does not make Solana’s numbers look bad at all. In fact, the number of raw transactions that Solana handles is vastly greater than those of competing chains. And even with these “bad” numbers, Solana is still a blockchain that you would want to be a part of. This divergence raises some big issues. Is it the case that users are becoming less active…

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Filed under: News - @ May 28, 2025 8:22 am