to leave a comment.
▲ Solana (SOL)
As the number of active addresses on the Solana (SOL) network has sharply declined from recent highs, market attention is focused on whether this is a sign of price stagnation coupled with waning investor interest.
According to crypto media outlet Bitcoinist on May 6 (local time), the Solana network had shown high performance and adoption for some time, but recent user activity appears to be slowing down. Santiment, a market intelligence and on-chain data analytics platform, stated that the number of active wallet addresses for Solana has significantly retreated from recent highs.
On a weekly chart basis, the number of active Solana network addresses increased to 5.01 million in early February but has recently decreased to approximately 2.89 million. Bitcoinist reported that the decline in active addresses indicates a slowdown in market participation and raises questions about the current price structure. Solana was mentioned as the 7th largest asset by market capitalization in the cryptocurrency market while experiencing price stagnation.
However, community sentiment has, on the contrary, strongly improved. According to Santiment, Solana-related sentiment has risen to its highest level since January, with 3.2 bullish comments appearing for every bearish comment on major social platforms like X (formerly Twitter), Reddit, and Telegram. Expectations are also growing within the community that Solana could break out by following a mean reversion trend after lagging behind Bitcoin (BTC) and other large assets.
Market expert and DeFi researcher Rios pointed to a sharp drop in volatility and an increase in long-term holders as reasons for Solana becoming quieter. He analyzed that Solana's volatility has fallen to about 35.5%, which could be a sign that the market is being absorbed by stronger hands. He also stated that Solana spot ETF inflows have exceeded $1 billion, and the supply held by long-term holders has increased from 524,000 SOL to 2.58 million SOL.
Rios explained that these trends could reduce short-term turbulence while limiting the pace of a breakout until momentum returns. He viewed the current situation as closer to quiet accumulation rather than a sign of vulnerability. He added that if volatility expands again, Solana's next move could be much larger than market expectations.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.