For joy maybe?
It’s been a wild ride this 2022 for those that are followers of the Solana community. From a very high $260 in late 2021 to a 52 week low of $22.87 those that have invested in the SOL token have been taken on one big emotional rollercoaster- well at least it isn’t LUNA right?
Recently the growth of the Solana chain cannot be denied. The new daily increases of active wallets and daily address additions show that wallets using the network outpace other blockchains with a growth percentage of 58%
New Daily addresses were created more on Solana than any other blockchain. This refers to first-time wallets which signal the increase in interest and adoption of a blockchain.
If there was to be a comparison one need only look at recent growth compared to late 2021. May and June of this year saw 400,000 and 240,000 wallets created respectively compared to the respective growth of 150,000 and 170,000 from December 2021 to January 2022. Currently there are over 32 Million active users of the blockchain, which is a rise of 17 million from the beginning of the year.
It should be noted that this has failed to translate into additional capital for the Solana powered DeFi platforms. The TVL of DeFi applications running on the Solana blockchain has still dropped a significant $2.9Bn this past week from the $6Bn of May, the peak of TVL being at $14Bn last December. In total Solana has lost about 60% of its TVL since November of 2021 during this current bear market.(newsbtc.com) Comparing this to the 36% loss in TVL since May (beincrypto.com)on the Ethereum chain it is clear that Solana has had a harder time handling this current market’s atmosphere.
The token has fared a bit better as the price of the cryptocurrency has finally seen an uptick of 34% over this past week, a good comparison would be the 14% of Bitcoin for this entire month.
In comparison to other blockchains the activity on Solana is positive as other chains like BNB staying stagnant while Ethereum showed a decline.
Some of this growth has been theorized to be a product of new positive sentiment towards Ethereum and the Proof Of Stake platform. Ethereum’ s new platform has brought in new positive sentiment towards any blockchain that uses the protocol thus Solana, Avalanche, Polkadot, and Cardano are benefiting from the new found positive feedback. It is anybody’s guess as to how long this new positive trend will last but for the meantime most of us are relieved by the apparent end of a long and hurtful bear run.”