Solana’s Active Wallet Growth Suggests Increased User Engagement Amid Price Corrections and Declining TVL
The post Solana’s Active Wallet Growth Suggests Increased User Engagement Amid Price Corrections and Declining TVL appeared on BitcoinEthereumNews.com.
Active wallet addresses on Solana are experiencing remarkable growth, signaling increased user engagement within the ecosystem. Despite this uptick in network activity, the Total Value Locked (TVL) in Solana’s DeFi sector has experienced a significant decline, highlighting a complex market landscape. According to recent analysis from COINOTAG, “The rise in active addresses underscores a potential disconnection between user activity and market valuation.” Solana’s user adoption is soaring while its Total Value Locked declines, indicating a puzzling discrepancy in market dynamics amidst robust network activity. Solana’s user adoption soars amid price correction Data from Glassnode indicated that the number of addresses with 0.1 SOL or more rose from around 9.2 million in late December to over 11 million by March 21. This surge suggests an increasing level of engagement from users despite a price drop. Source: Glassnode This growth in the user base indicates sustained interest in the Solana ecosystem, even as the asset’s price has declined from a high of $180 in January to approximately $129.54 at the time of writing. This divergence suggests that retail investors may be accumulating SOL in anticipation of future gains. Solana’s TVL faces pressure, but holds key levels Conversely, the Total Value Locked (TVL) on Solana has registered a notable decline. According to DeFiLlama, the TVL plummeted from a peak above $11 billion in January to approximately $6.4 billion recently, reflecting a contraction in DeFi activity catalyzed by macroeconomic volatility. Source: DeFiLlama It is noteworthy that the current TVL level remains significantly higher than the pre-bull market baseline of 2023, suggesting that Solana’s DeFi ecosystem continues to hold traction despite challenges. Solana’s price outlook – Rangebound, but supported by accumulation At the time of this report, SOL was trading below the 50-day moving average ($135.50) and the 200-day moving average ($188.05), indicating a broader…
Filed under: News - @ March 23, 2025 3:18 am