**Solana’s Active Addresses Slump to 12-Month Low: Can Bulls Propel a Resurgence?**
Solana’s active addresses have dropped to a 12-month low, signaling a significant shift in user behavior. Despite this downturn, many Solana bulls remain optimistic, targeting a potential price surge toward $200 by year-end.
**Active Addresses Tumble as Memecoin Frenzy Fades**
On-chain data reveals that Solana’s active addresses have steadily declined over the past year. Currently, active addresses stand at 3.3 million, representing a new low for the blockchain regarded as a leader in memecoin launches and trading.
Early in the year, Solana boasted just over 9 million active addresses. The latest figures reflect a substantial 63% drop, coinciding with waning interest in the memecoin sector throughout 2024.
Despite the overall decline, activity remains concentrated in key segments. Notably, memecoin launchpad Pump.fun has weathered the downturn, generating over $1 million per day and commanding 90% of Solana’s token launchpad market share. Analysts suggest that the slump in active addresses highlights the risks of relying on a single market narrative.
**SOL Price and Market Sentiment**
The fall in Solana’s active addresses has mirrored a drop in SOL’s price. From its all-time high of $294, SOL now trades around $143, shedding 26% of its market value in the past month alone amidst broader crypto market bearishness.
**Signs of Optimism: New Projects and Institutional Interest**
Despite the subdued metrics, there are glimmers of optimism among Solana enthusiasts. Bulls are hopeful that the launch of new decentralized exchanges, real-world asset (RWA) protocols, and prediction markets will reignite network activity.
Solana’s total value locked (TVL) remains robust at over $10 billion, providing a beacon of hope for investors. The emergence of non-speculative projects is beginning to capture a share of the market, potentially diversifying Solana’s appeal.
Analysts predict a possible short-term rally toward $200, contingent upon SOL breaking out of its current falling wedge pattern. However, a sustained reversal will depend on increasing institutional buying.
Already, major investors continue to accumulate SOL, undeterred by recent price dips. The Bitwise Solana ETF, for instance, has attracted over $500 million in inflows in just one week, reflecting strong ongoing interest in the network’s long-term potential.
**Conclusion**
While Solana faces headwinds with declining user metrics and falling prices, the network still pulses with potential. The coming months will be crucial as new projects and institutional interest could spark the next phase of Solana’s growth and recovery.
https://bitcoinethereumnews.com/tech/solana-active-addresses-tumble-yet-bulls-still-cling-to-optimism-%e2%8b%86-zycrypto/
