The Solana (SOL) network has witnessed significant activity recently, largely driven by the surge in popularity of meme coins. However, it's not solely the meme coins that have drawn users to the Solana network; decentralized applications (dApps) hosted on Solana have also played a pivotal role in attracting users.
Examining the environment of Solana
In recent weeks, a lot of active addresses have been added to well-known dApps like Pyth network, Wormhole, and Jupiter.
The increased development activity on these dApps also raised the possibility that more upgrades and updates were forthcoming. The network may see an increase in users as a result of these recent changes.
The amount of transactions that take place on the Solana network every day has increased from 20 million to 30 million in the last few weeks.
The quantity of active addresses on the network each day, however, had not changed.
This suggested that the large volume of network transactions was not coming from new addresses but rather from the same ones.
There are some obstacles ahead
The Solana network encountered some issues in the DeFi industry. The volume of DEX (Decentralized Exchange) on the network has decreased dramatically in the past few days. In addition, the TVL (Total Value Locked) started to stagnate.
Additionally, throughout this time, the number of NFTs sold on the Solana network had decreased.
A detrimental impact on the Solana environment and potential obstacles to the ecosystem's future growth could result from these issues.
The price of the SOL token can be negatively impacted by a decline in interest in Solana's ecosystem. SOL's price had dropped by 4.84% over the previous day as at the time of publication, trading at $146.24.
May 2024, Cryptoniteuae