According to data from Artemis, on September 10, Solana recorded a new all-time high of 5.4 million daily active addresses (DAA). This figure is nearly double that of its closest competitor, which saw just over 2.5 million active wallets on the same day. This indicates that Solana continues to attract strong interest from the community despite the ongoing fluctuations in the cryptocurrency market.
Although the number of users surged, transaction fees on Solana have significantly declined in recent months. According to statistics from The Block, the total daily transaction fees dropped to their lowest level since March 2024, with only 4,000 SOL paid on September 6, a sharp 60% decrease compared to the 10,000 SOL per day average during Q2/2024. The primary reason for this decline is the fading memecoin craze, which once dominated Solana’s ecosystem.
However, on September 8 and 9, Solana’s daily transaction count showed signs of recovery, increasing by 22% to reach 40.3 million. This growth could help stabilize the network’s transaction fees, which had been falling since August.
Network fees are currently around $595,000, returning to levels seen before the memecoin frenzy began. A similar trend was observed with trading volume on Solana’s decentralized exchanges (DEX), which dropped by more than 27% in August.
Analysts predict that the upcoming Solana Breakpoint event, scheduled for September 20-21, 2024, could be a catalyst for the recovery of transaction fees and SOL’s value. Historically, SOL’s price has surged in the weeks leading up to Breakpoint, with increases of 35% in 2021 and 2022, and 60% in 2023. This presents a potential opportunity for investors as projects within Solana’s ecosystem often unveil new products at the event.
The growth in daily active addresses and transactions on Solana shows that the network continues to maintain strong appeal. However, the fluctuations in transaction fees and the state of the memecoin market pose challenges to the ecosystem. Investors should closely monitor developments at the upcoming Solana Breakpoint conference to make informed strategic decisions ahead of potential market shifts.
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