Solana’s Active Addresses Drop 60% While Price Holds Steady

• Solana’s active addresses plunged 60% in four months, raising concerns about user retention and long-term network adoption.
• Despite a sharp drop in network activity, SOL’s price remains stable, suggesting strong investor confidence and market support.
• A sustained decline in active users could impact Solana’s growth, affecting ecosystem expansion and long-term valuation.

Crypto Analyst Ali reports on his X post that Solana’s network activity drops with active addresses dropping from 18.5 million in October 2024 to just 7.3 million in February 2025. This 60% drop in user interest questions Solana’s long-term adoption and sentiment in the market. Though Solana’s price holds strong at $168.07, the price action correlation with active addresses shows a causal relationship between user activity and valuation.

Solana’s Network Sees a Sharp Decline

Solana’s network activity peaked on October 22, 2024, at 18,545,425 active addresses. At that moment, SOL was trading at $167.27. However, the number of active addresses quickly fell, with variations before a continuous downtrend. By February 23, 2025, active addresses had dropped to 7,324,982. Despite the dip, SOL’s price has remained stable.

Moreover, the data reveals a consistent relationship between active addresses and price movements. During periods of increased activity, Solana’s price generally trended upward. Conversely, declining engagement coincided with price stabilization. This pattern suggests that user participation influences SOL’s market valuation.

Price Stability Despite User Drop-off

Between September and November 2024, active addresses fluctuated mirroring SOL’s price volatility. The highest spikes in user engagement aligned with price surges, reinforcing the connection between participation and valuation. However, by late December 2024, both active addresses and prices began declining. This downward trajectory extended into early 2025, further solidifying concerns about Solana’s user retention.

By mid-Jan 2025, the SOL price experienced a brief short-term jump while network use continued to go down. Such a difference questions the viability of current price levels against decreasing user interest. Figures for February 2025 record further declines in active addresses with numbers reaching the lowest recorded across the observed period.

Long-Term Implications for Solana

Active address decline can impact Solana’s long-term performance. Network lows can serve as signs of waning interest that will affect investor sentiment. Reduced activity may also hinder ecosystem growth, leading to reduced transaction volume and network utilization. However, despite declining user activity, SOL price stability indicates bullish market support. Investors can still view Solana as a worthwhile investment opportunity despite lower on-chain activity.