Solana’s daily user activity plunges to lowest level since January 2023
- Solana has seen a significant decline in network activity since January.
- Despite this, it recorded a surge in DeFi TVL.
On a seven-day moving average, the daily count of active addresses on Layer-1 (L1) network Solana [SOL] closed August at 204,000, the lowest level since the beginning of the year, The Block’s Data Dashboard revealed.
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On a year-to-date (YTD), Solana has recorded a 44% drop in its number of daily active addresses. As of 4 September, the network saw 207,820 active addresses.
The fall in activity on Solana last year was due to the several outages it experienced. The network suffered 11 major and three minor outages in 2022, each of which caused a significant number of users to leave the project.
With only one outage suffered this year, the decline in user count can be attributed to two main factors: the unexpected collapse of FTX in November 2022 and the recent designation of Solana’s native SOL token as a security by the Securities and Exchange Commission (SEC).
Solana in the last month
With a 16% decline in daily user activity recorded in the last month, daily transaction count on Solana also suffered a slight decline. According to data from Artemis, it fell to as low as 13.69 million on 26 August before seeing a correction.
On 5 September, the chain recorded a total transaction count of 16.3 million.
Due to low user activity on the chain, network fees and revenue obtained from the same also plummeted. In the last month, total transaction fees and revenue made by Solana both dropped by 4%, data from Token Terminal revealed.
Regarding the L1’s decentralized vertical (DeFi), its total value locked (TVL) has risen significantly since the year began. At $625.95 million at press time, Solana’s TVL has increased by over 150% since January.
Considered on a YTD basis, Solana has seen laudable TVL growth since the beginning of the year. Although, in the last month, this has dipped by 2%, according to data from DefiLlama.
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During that period, three out of the four largest protocols on Solana in terms of asset value have all seen their TVL decline by double digits.
SOL has not been spared
The network’s native token SOL has also seen a considerable value decline in the past 30 days. Exchanging hands at $19.81 at press time, the coin’s price has dropped by 15% in the last month, data from CoinMarketCap showed.