- In January, Solana recorded a strong increase in demand for new products.
- This brought network activity in the chain to a record high.
Leading Layer 1 (L1) network Solana [SOL] has seen a surge in new users, with the number of unique addresses created on the network hitting a record high in January, according to data from The Block dashboard.
According to the data provider, the number of new addresses created on Solana during the 31-day period was 11.81 million. This represented a growth of 18% compared to the 10 million new addresses the network registered in December.
AMBCrypto found that January’s figure was the highest for the network since May 2022, when it ended the month with a new address count of 11.72 million.
Source: Het Blok
AMBCrypto reported earlier that the recent increase in network activity on Solana was due to anticipation surrounding the Jupiter airdrop.
Described as the largest airdrop on the Solana network, 622 million JUP tokens (worth $3.6 billion) were successfully distributed to over 440,000 addresses via Jupiter Exchange on January 31.
On the day of the airdrop, the daily number of active addresses on the Solana network rose to a record high.
Are there consequences for other sectors?
Although January was marked by increased demand for the Solana network, the non-fungible tokens (NFTs) sector failed to benefit. According to data from CryptoSlamSolana recorded a decline in NFT sales volume.
Information from the data provider showed that during the period under review, NFT sales volume on Solana was $239 million, a whopping 35% drop from the $365 million sales volume recorded in December.
This difference in month-over-month sales volume on Solana was due to the differences in the total number of NFT transactions completed in the two months.
According to CryptoSlam, 6.5 million NFT sales transactions were completed on Solana in December. By the end of January this had fallen by 31%.
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On the other hand, Solana’s Decentralized Finance (DeFi) industry saw some growth in January. According to data from DefiLlamathe network’s total value locked (TVL) rose 11% in January.
For context, the network’s TVL was $1.41 billion on New Year’s Day. By January 31, this had risen to $1.6 billion.