Solana: Outage FUD subsides, should you expect better performance in March?
- Solana’s daily active users recovered handsomely since the outage-induced FUD subsided.
- The number of long positions for SOL jumped over the last few days.
The Solana [SOL] ecosystem saw a significant uptick in its daily active addresses, eclipsing other big chains like Ethereum [ETH] and Polygon [MATIC].
UPDATE: @solana Daily Active Addresses jumps to 500K, surpassing Ethereum and Polygon.
— Step Data Insights (@StepDataInsight) March 4, 2023
This behavior was supported by readings from Token Terminal. After nosediving on the back of a big outage on 26 February, the daily active users (DAUs) exploded 9x as of 3 March.
The growth in the number of users catapulted the network’s transaction fees to $51.1k from $2.3k.
Solana is back in the game!
Solana got a lot of bad press after its first major network outage in 2023 which lasted for nearly 20 hours. The platform faced a lot of flak on social media over its growing list of outages and FUD seemed to have gripped the community.
However, there were early signs that things could be changing for the better. One of the reasons behind the recent upswing in DAUs could be due to growth on the NFT front.
According to CryptoSlam, the NFT sales volume on the chain soared to $2.7 million at press time from the lows of $34.68k following the outage. The number of unique buyers and sellers also grew significantly.
Apart from this, the hype associated with Helium Network’s migration to the network could have prompted investors to dump their FUD in favor of Solana.
The migration of the decentralized wireless communication network is expected to happen later this month on 27 March.
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Will SOL be the right bet in March?
Investors turned optimistic for SOL as the weighted sentiment for the coin improved, data from Santiment revealed. The recovery was impressive although it should be noted that the metric was still negative.
On the other hand, the development activity declined sharply over the week. This was a negative signal considering the hype around the upcoming Helium Migration.
Realistic or not, here’s SOL’s market cap in BTC’s terms
At press time, SOL traded at $21.24 with a marginal gain of 0.18% in the last 24 hours, data from CoinMarketCap showed.
Bullish sentiments returned for SOL as evident from the sharp rise in the number of long positions taken for the coin in the last two days, per data from Coinglass.