- SOL’s market cap increased by over 130% in Q1.
- Sentiment around the token turned bearish last week.
Like most cryptos, the first quarter of 2024 ended on a positive note for Solana [SOL], as it performed well on multiple fronts. Therefore, here’s a closer look at SOL’s Q1 performance and what you should expect in Q2.
Solana’s Q1 stats
Coin98 Analytics, a data analytics platform, recently posted a tweet highlighting Solana’s network stats during Q1. As per the tweet, SOL displayed remarkable performance in terms of captured value.
SOL’s fees and revenue increased 7 times compared to the previous quarter and 27 times compared to the same period last year.
However, it was surprising to see that despite the massive surge in revenue, the blockchain’s total earnings dropped by 131% in the last quarter. The reason behind this was a 141% rise in Solana’s expenses in Q1.
Nonetheless, the blockchain’s network activity remained robust. This was the case as its daily active addresses surged by 214% and exceeded 591k.
AMBCrypto then checked Artemis’ data to find out how things were looking in Q2. We found that both its feeds and revenue declined during the last week.
A similar declining trend was also noted in terms of daily active addresses. Nonetheless, SOL’s daily transactions increased last week, reflecting a rise in usage.
Source: Artemis
Solana investors took profit
Coin98’s tweet also mentioned how SOL’s price increased during Q1, thanks to the bullish market condition. As per the report, SOL’s circulating market capitalization exceeded $53 billion as it surged by over 130% in Q1.
However, the growth momentum slowed down in Q2 as bears jumped in.
According to CoinMarketCap, SOL’s price dropped by more than 5% in the last seven days. At the time of writing, SOL was trading at $173.25 with a market cap of over $77 billion. To see how the drop in the token’s price affected market sentiments, AMBCrypto took a look at Santiment’s data.
Our analysis revealed that Solana’s social volume remained high last week, which reflected its popularity in the crypto space. However, investors’ confidence in SOL dwindled because of the price action.
The token’s weighted sentiment remained in the negative zone, meaning that bearish sentiment around SOL was dominant in the market.
Source: Santiment
Realistic or not, here’s SOL’s market cap in BTC’s terms
Things in the derivatives market also looked pretty bearish on SOL. Its open interest increased while its price dropped, indicating that the declining price trend might continue further.
Additionally, its funding rate was also high. This suggested that futures investors were buying SOL activity at its low price.
Source: Santiment
