- Solana’s active user base pumped over a million on the 26th of January, the first in more than a month.
- The spike in network activity was likely due to increasing action on its decentralized exchanges.
Proof-of-stake network Solana [SOL] comprehensively overtook Bitcoin [BTC] in daily active users, after being neck and neck and even trailing the first-generation blockchain for much of last week.
Solana sees a healthy network demand
According to AMBCrypto’s analysis of Artemis data, Solana’s active user base pumped over a million on the 26th of January, the first in more than a month.
On the same day, Bitcoin’s Daily Active Addresses plummeted to 597,000.
Source: Artemis
On the other hand, Solana maintained an unassailable lead as far as on-chain transactions were concerned. The daily count stood at 26.39 million on the 26th of January, surpassing other networks by a mile.
To gauge a sense of the dominance, the second-ranked Tron [TRX] recorded around 4.59 million transactions on the same day, a fraction of Solana’s tally.
Source: Artemis
Are DEXes driving demand?
The sharp spike in Solana’s network activity was likely caused due to increasing demand for its decentralized exchanges (DEXes).
According to CoinGecko, Solana-based Jupiter flipped market leader Uniswap [UNI] in 24-hour volume, facilitating trades worth $389 million.
In fact, Solana has seen significantly high DEX volumes over the last three months, following the lows of the 2022-23 bear market, AMBCrypto noticed using DeFiLlama data.
The month of December witnessed the highest-ever monthly DEX volume on the network at $28 billion, while January has seen transactions worth $18.8 billion as of this writing.
Source: DeFiLlama
SOL gets positive momentum
Healthy developments on the network front started to reflect on the price of the native token SOL.
The fifth-largest cryptocurrency bounced 4.48% in the last 24 hours, taking its weekly gains to 4.23%, according to CoinMarketCap.
However, the performance of SOL in 2024 thus far has been nothing like what it was in the last quarter of 2023.
The asset dropped 17% year-to-date (YTD), after stunning the market with a fivefold price jump in Q4 2023.
How much are 1,10,100 SOLs worth today?
As things stand, the market sentiment for SOL shifted from greed to neutral, as per AMBCrypto’s examination of Hyblock Capital data.
SOL’s short to medium-term prospects rest on the demand from market buyers, and hence more traders needed to show willingness to purchase the asset at press time.
Source: Hyblock Capital
