Solana active addresses dropped to a 12-month low of approximately 3.3 million on Thursday, a severe drop considering that it was over 9 million at the beginning of the year.
The DeFi TVL of the network is still close to 10 billion, with Jupiter, Kamino, and Jito leading, indicating that the activity is still active despite a decreasing number of users.
Memecoin boom Solana addresses boomed in late 2024 due to its higher transaction speeds and reduced fees relative to Ethereum. The movement was very interested in the memecoin introductions and trading on the Solana network.
Decay associated with decreasing trends of memecoin
The decline in active is equal to the dwindling memecoin interest this year. According to on-chain data, Pump.fun continues to be a strong token launchpad that brings in more than 1 million daily and dominates approximately 90% of the market share of the launchpad. This implies focused involvement in few points despite the general activity reducing.
The decline in the activity of memecoins illustrates how volatile trends in crypto are and how dangerous it is to base the development of the network on just one story. The pattern of Solana memecoin usage is typical of other chains where in the early stages users are initially hyped then eventually it goes normal. The price of Solana has remained fairly stable over the past 24 hours, ranging between $154.64, however, it has lost approximately 4.6% in the past week and almost 25% in the past month.
Growth in network and DeFi
Although there is a decline in the activity of memecoins, Solana has been developing its infrastructure. The network is currently targeting decentralized exchanges, prediction markets, and real-world asset protocols. According to DefiLlama statistics, the TVL of Solana has reached above 10 billion and the areas with the most significant growth are Jupiter, Kamino, and Jito.
Derivatives metrics indicate that Solana traders have even exposure. According to Coinalyze, Solana futures have an open interest of $3.3 billion, which implies institutional participation, but with less retail participation.
ETF inflows remain strong
Despite the decreasing number of active addresses on the network, Solana ETFs are still drawing the attention of investors. In the week that ended on November 10, Spot Solana ETFs registered the highest net inflows of $6.8 million as compared to Bitcoin and Ethereum funds. Inflows into Bitwise BSOL ETF of $12.5 million on Wednesday increased the total to $344 million. The GSOL fund at Grayscale GSOL fund increased by $5.2 million to $24.4 million.
The high ETF performance is credited by the fact that BSOL has a first-mover advantage and a low charge of 0.20% compared to 0.35% by GSOL. Solana ETFs are now on 12 days of positive inflows with over $369 million in the assets. Solana ETFs trading has recently been added to the New York stock exchange; this has further gained momentum with options trading.
According to experts, the success of Solana as an ETF can provoke the popularity of XRP and Dogecoin funds. The adoption of these tokens by institutions should increase as the regulation is more explicit, and this type of liquidity is usable worldwide, as well as in real-world applications.
