- Solana’s TVL has soared, reflecting the growth of the DeFi ecosystem.
- SOL rose only 1% last month and market indicators remained weak.
Solana (SUN) It’s been an optimistic month in terms of network activity, with a significant number of users being acquired.
However, the same could not be said for the price action of the token, which was affected by weakness during this period.
Solana’s network activity is increasing
Artemis recently posted a tweet revealing the top blockchains by largest daily active users in the past month.
Solana did not make it into the top three, dominated by Phantom (FTM), Optimism (OP), and Base. However, it was expected to increase by 21% compared to the previous month.
The largest increase in daily active users compared to the previous month was:
1. Phantom
2. Optimism
3. Base
4. Gnosis Chain
5. Solana
6. Polygon zkEVM
7. Bitcoin
8. Short-distance protocol
9. Aptos
10. Zora NetworkAre you surprised by these numbers? pic.twitter.com/F07XjNxcPL
— Artemis (@artemis__xyz) February 5, 2024
AMBCrypto took a closer look at Artemis’ metrics to see how other relevant metrics were doing last month. data. As rightly highlighted in the tweet, Solana’s daily active addresses have been rising over the past 30 days.
As a result, daily transactions on the blockchain remained high over the same period.
Source: Artemis
There was also optimism in terms of value captured, as evidenced by the increase in metrics. For example, booth Solana’s fees and revenue remained high over the past month, with a huge spike on January 31st.
Blockchain performance in the DeFi space has also improved, which is evident in the significant increase in Total Value Locked (TVL). At the time of reporting, brushTVL reached $1.66 billion.
Source: Artemis
Solana investors are not very pleased
Although the blockchain saw a surge in network activity, the price action of its native token did not match well.
According to CoinMarketCap, the price of SOL has moved sideways over the past month with the price rising by just over 1%. At the time of this writing, SOL was trading at $96.06 with a market capitalization of over $41.9 billion.
To determine what was wrong, AMBCrypto checked SOL’s on-chain metrics. We found that SOL’s Weighted Sentiment remained on the negative side for most days last month.
This indicates that bearish sentiment surrounding Solana dominates the market at press time.
Binance funding ratio also remains in the green, meaning derivatives investors are actively buying. brush This is because price volatility has remained low.
Source: Santiment
Another possible reason for SOL’s sluggish price action could be the result of whale behavior.
AMBCrypto is reported Previously, whales were sending SOL to exchanges in quick succession, which meant selling pressure.
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Looking at Solana’s daily chart, it seemed likely that there would be a few more slow moving days. Bollinger Bands showed that the price of SOL is in a less volatile area.
MACD also showed the possibility of a bearish crossover. Nonetheless, SOL’s Money Flow Index (MFI) turned strong, recording a sharp rise.
Source: TradingView