In the unpredictable world of cryptocurrency, Solana (SOL) seems to be weathering a tumultuous storm with the consistent downswing in its market value. As per figures sourced from CoinMarketCap, the virtuous ‘Ethereum Killer’ has plunged by a significant 6.36% in its weekly chart, earning the dubious distinction of being the most affected among the top-ranked 10 tokens.
The drop in valuation is illustrative of the larger negative trend SOL has been subjected to, dwindling by a major 24.61% in the past month alone. Irrespective of the ongoing monetary maelstrom, when it comes to techno-functional implications, the Solana network recently surpassed a new milestone that might potentially pique investors’ interest.
Recent data procured from Artemis, a renowned blockchain analytics platform illuminates that the network has hit a remarkable new high of 30 million active users, or addresses, a breath of fresh air for SOL loyalists. This encouraging piece of information was circulated last Friday by SolanaFloor—a recognized data analysis entity.
The incredible ascent of Solana blockchain was witnessed in 2022, where it attained a towering 25 million active users. However, a significant slump in its monthly active users was noted in the succeeding year, dropping to a dismal 5 million. Fast forward to 2024, the smart contract platform revealed a new dawn with a stable increment in monthly users throughout the year so far—displaying its resiliency in a challenged market.
The crypto-verse acknowledges the growth in network users as an indicator of swelling market confidence from investors, a key aspect given SOL’s current price depreciation. For the fifth largest cryptocurrency, this increment in active addresses can be attributed to a mushrooming trend surrounding Solana meme coins – a prodigious $5.65 billion ecosystem offering investors the opportunity to reel in sizeable trading profits.
Moreover, a surge in network users often provides larger liquidity and enhanced network security while fostering the inception of newer use cases. These factors amplify the appeal of the cryptocurrency to potential investors, further boosting its worth.
At this juncture, SOL is trading at a tentative $133.36, following a subtle 0.34% decrease in the past day. Coupled with that, the token’s daily trading volume too has slumped by 6.81% settling at a net value of $2.19 billion. For Solana, there is a formidable opposition at the $151 price bracket. If there is an adequate buying pressure to breach this threshold, SOL could potentially bounce back reaching nearly $190 in the coming weeks.
A possible rejection at this price point might lead to an additional decline, potentially dragging the token’s price down to $120. It is a cliche but nevertheless bears repetition: all investors and traders must conduct comprehensive research and exercise discretion before immersing themselves into the dynamic world of cryptocurrency trading.
SOL’s value on the clock at this very moment is $133.89 on the daily chart. As the script of Solana’s future unfurls, only time will determine the shape of things to come.
