Solana celebrates six months of stability as market struggles for recovery

• Solana has witnessed downtime once so far in the year.
• SOL has fallen below its long MA support, trading around $21.

Solana [SOL] has exhibited remarkable stability recently, which is especially noteworthy considering its past performance. While the network’s newfound stability is a positive development, has this been achieved at the cost of reducing the platform’s user count? Additionally, how stable has the SOL token itself been during this period?

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Solana improves on downtime

Step Data Insights‘ recent report has provided a positive outlook on the current status of Solana. The report highlighted that Solana has achieved a remarkable 100% uptime over the past six months. While this might appear unremarkable at first glance, considering the difficulties the network faced in the preceding year lends context to this achievement. 

Solana has experienced 100% uptime in the last 6 months. pic.twitter.com/A4eRldDSkl

— Step Data Insights (@StepDataInsight) August 21, 2023

Furthermore, a closer examination of the uptime records revealed that the network’s last downtime occurred in February. In contrast, the network experienced downtime on 14 occasions in the prior year, encompassing minor and substantial disruptions.

Analyzing the Solana daily user trend

According to data from DefiLlama, the count of daily active users has remained relatively steady, displaying no significant shifts. While a slight decrease in the tally of daily active users was noticeable, this decline did not wield adequate influence to render the network either stable or unstable.

As of this writing, the daily active user count was over 88,000. In comparison, during the same period in 2023, the count was nearly 200,000.

Source: DefiLlama

However, a clear and conspicuous downtrend was notably evident in the Total Value Locked (TVL). Following its zenith at approximately $9.7 billion in 2021, the TVL has considerably reduced. At present, TVL is registered around $304 million. 

SOL falls below its support

Solana experienced a substantial decline toward the previous year’s close, followed by a recovery at the start of the present year. While it has not yet fully regained its former position, it has demonstrated a favorable trajectory. This trend, however, is not unique to SOL alone, as the entire market has been encountering a less-than-impressive performance. 

Source: TradingView

How much are 1,10,100 SOLs worth today

As of this writing, SOL was trading around $21, reflecting a minor loss of less than 1% based on the daily timeframe chart. Additionally, the ongoing trading session sustained the negative trends SOL underwent over the past few days.

This consecutive downturn has caused SOL’s value to dip below its long Moving Average (blue line), which had previously functioned as a support level.