- How Significant Is the Drop in User Activity?
- What Might Be Causing This Decline?
- Key Insights for Users
August has been a challenging month for the Solana network, with a noticeable decline in user activity and transactions. By the end of the month, Solana hit its lowest annual figures in terms of transactions and active addresses.
How Significant Is the Drop in User Activity?
The network has experienced a 67% reduction in monthly active users compared to the 54.33 million recorded in July, and a 16% decline year-to-date (YTD). Data from The Block’s Dashboard indicates that new users on the network have fallen to 11.1 million this month, a stark 66% drop from the YTD peak of 33.15 million in July.
What Might Be Causing This Decline?
Non-voting transactions on Solana include activities such as token transfers, staking, and NFT sales. With the recent decrease in activity, both network fees and revenue have been severely affected. Data from Artemis reveals a 62% plunge in these metrics over the past 30 days.
Key Insights for Users
– Users should monitor the declining transaction volumes, which could impact transaction speeds and fees. – A significant drop in new users might affect the overall network activity and long-term sustainability. – The current price resistance and support levels for SOL should be noted for investment decisions. – Reduced network fees could offer lower costs for high-frequency traders.
Currently trading at $145.58, SOL has been displaying a sideways trend since August 12. The token is facing resistance at $152.12 and has support at $137.65. The Relative Strength Index (RSI) indicates a balanced market with no significant buying or selling pressure. If SOL surpasses the resistance level and confirms it, its price could rise by 10% to $160.09. Conversely, if selling pressure increases, it may fall below the support level to $133.64.
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