- Solana’s active user base rose above a million on January 26, the first in more than a month.
- The spike in network activity was likely due to increased action on the decentralized exchanges.
Proof-of-stake network Solana [SOL] Bitcoin completely overtaken [BTC] in daily active users, after being neck and neck and even behind the first-generation blockchain for much of the past week.
Solana sees healthy network demand
According to AMBCrypto’s analysis of Artemis data, Solana’s active user base rose over one million on January 26, the first in more than a month.
On the same day, Bitcoin’s Daily Active Addresses plummeted to 597,000.
Source: Artemis
On the other hand, Solana maintained an unassailable lead in on-chain transactions. The daily count reached 26.39 million on January 26, far surpassing other networks.
To gauge a sense of the dominance, second-place Tron [TRX] recorded about 4.59 million transactions on the same day, a fraction of Solana’s number.
Source: Artemis
Does DEX stimulate demand?
The sharp spike in Solana’s network activity was likely driven by increasing demand for its decentralized exchanges (DEXs).
According to Coin geckoSolana-based Jupiter has turned around market leader Uniswap [UNI] in 24-hour volume, facilitating transactions worth $389 million.
In fact, Solana has seen significantly high DEX volumes over the past three months, following the lows of the 2022-2023 bear market, AMBCrypto noted using DeFiLlama data.
The month of December saw the highest monthly DEX volume ever on the network at $28 billion, while January saw transactions worth $18.8 billion at the time of writing.
Source: DeFiLlama
SOL is gaining positive momentum
Healthy developments on the networking front began to reflect on the price of the native token SOL.
The fifth-largest cryptocurrency rose 4.48% in the past 24 hours, bringing its weekly gain to 4.23%, according to CoinMarketCap.
However, SOL’s performance in 2024 so far looks nothing like the last quarter of 2023.
The asset fell 17% year-to-date (YTD), after surprising the market with a fivefold price increase in the fourth quarter of 2023.
How much are 1,10,100 SOLs worth today?
As things stand, market sentiment for SOL has shifted from greed to neutral, according to AMBCrypto’s examination of Hyblock Capital data.
SOL’s short- to medium-term prospects depend on buyer demand in the market, which is why more traders needed to show willingness to buy the asset at the time of writing.
Source: Hyblock Capital