Solana is one of the most patronized blockchains in the crypto finance space by developers and users. Aside from that, its native asset, SOL, records some of the biggest trading volumes in the market.
The latest milestone in the Solana project comes with a growth in the number of active wallets on the Solana Network in 2022.
Within the first six (6) months, there has been a 58% increase in the number of wallets associated with the project. This comes after a significant decline in the prices of all digital assets which has brought about the term Crypto Winter.
Despite more than $2 trillion being wiped off the overall market value of cryptocurrencies, Solana has seen a positive in user activity.
According to data from CoinMarketCap, which also sourced information from the Block and Glassnode, during the bear market, the number of new daily addresses on Solana grew.
New Daily Addresses simply means the first-time wallets appear on a particular blockchain network. These are signs of growth and adoption of innovative solutions by a particular project.
Before the plunge of the markets into new high lows in May, new users on Solana reached a high of more than 400,000. After the bearish engulfment, there has been a 40% drop in this number to around 240,000 users this week (July 18 to date).
These figures are a huge leap from the daily levels of 150,000 to 170,000 experienced in December 2021.
Likewise, the number of daily wallets has ascended in 2022. There were more than 32 million active users in June. This was down 13% from May’s 37 million. This means that between 12 and 17 million users were added to the 20 million active wallet addresses from January to April.
Despite the rise in users, total value locked (TVL) on Solana continues to shrink. After reaching a peak of $14 billion in December 2021, the bearish trends of the market which gained roots in the last month of last year saw Solana TVL decline to $11.22 billion on January 1, 2022.
By the end of the first quarter of the year on March 31, there was a further reduction of 30% in the value locked on Solana to $7.8 billion. On the first day of April, TVL on the blockchain that has found an answer to the blockchain trilemma of security, decentralization, and scalability was $7.75.
Due to the crash of TerraUSD (UST), the algorithmic stablecoin behind the Terra ecosystem, billions of dollars were wiped off the decentralized finance (DeFi) market.
By the end of the second quarter on June 30, Solana TVL was worth around $2.5 billion, per data from DeFiLlama.
In spite of the recent gains made by decentralized applications (dApps) such as Marinade Finance, Solend, Serum, Raydium, Atrix, Quarry, Mango Markets, Lido, Saber, Friktion, JPool, Larix, Parrot Protocol, Socean, Maple, and Credix among others, total value locked on Solana was $2.89 billion, as of Wednesday, July 20.
In comparison to other blockchains, CoinMarketCap pointed out that, “BNBChain has seen its new daily active addresses fall just north of 17.9%. Ethereum is faring worse at 51.8% over the same period.”
SOL opened at $170.31 on January 1, reached a yearly high of $179.43 on January 2, tested a yearly low of $26.06 on June 14, and closed on June 30 at $33.59.
Overall, this represented an 80% plunge in the opening and closing price of SOL from the first day to the end of the second quarter.
As of writing on Wednesday, July 20, SOL was exchanging hands for $45.84, a 36% increase in July, had a trading volume of $2.05 billion, and a market capitalization of $15.77 billion, per data from CoinMarketCap.