Solana appears to be attracting users at a much faster rate. Since the beginning of September, network growth has increased by 124%, with approximately 1.71 million new wallets created every day.
Activity is also increasing.
Network growth accelerates
According to Santiment’s latest findings, daily active addresses increased by 58% over the same period, reaching approximately 4.27 million unique wallets. In other words, more and more people are not just creating wallets but actually using the network. The growth gives SOL a stronger long-term case if the trend continues.
Saint explain,
“Networks that attract more users and are actually useful have historically had greater potential to support higher market capitalizations over time. If Solana continues to expand its active user base, the network’s growing value may eventually follow.”
At the time of writing, SOL is trading near $115 after another 3% decline over the past day. The crypto asset broke its own channel support on the four-hour chart after a rejection near $120 this week. The breakdown focused on $114. If this level fails, Ali Martinez believes that $111 could be the next level. According to trader “Wick”, on the other hand, corrections can become opportunities.
Long-term projections remain decidedly optimistic. Tracer predicted a breakout above $300 during the bull market. Martinez is even more optimistic. He highlighted a possible cup-and-handle pattern on SOL’s monthly chart, with a neckline around $295. A monthly close above this level could strengthen the pattern. Interestingly, the trend is pointing towards a potential target near $2,744.
Institutional demand takes a hit
The institutional side has slowed down. September was a strong month for U.S.-listed spot SOL ETFs, which collectively brought in more than $271 million, making it their second best month yet. However, October started on a very different note. The funds saw only one day of inflows, with just $1.30 million entering on October 2. So far this month, more than $22 million has been withdrawn from these investment vehicles.
Elsewhere, Solana’s stablecoin activity is reaching new heights as the network advances through institutional settlement. More than 14 million addresses now hold stablecoins on Solana, according to data compiled by Blockworks. This represents a considerable jump from less than 4 million at the end of 2024.
The network now has over $15 billion in stablecoin supply.
Solana Network Growth Jumps 124%: Here’s Why It Could Matter for SOL appeared first on CryptoPotato.
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