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Solana Revival Gathers Momentum as On-chain Activity Increases

2 mins
Updated by Kyle Baird
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In Brief

  • Solana transactions have returned to pre-FTX levels.
  • There has also been an increase in active wallets.
  • SOL Prices have remained flat for the past couple of days.
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The previously written-off Solana network is going through a revival phase. An uptick in on-chain activity has pushed SOL prices to a two-month high.

Solana on-chain activity is showing signs of recovery. Furthermore, transaction volumes and active accounts have both spiked back to pre-FTX levels, according to the analytics platform Messari.

On Jan. 12, the firm posted a couple of charts showing that the Solana transaction count had returned to October levels. Furthermore, the number of active accounts has spiked to around 240,000, according to the Messari charts.

“While tweets and meme coins may have been the cause for recent activity, it is difficult to pinpoint the FTX collapse by looking at these metrics.”

Solana NFT Volumes Increasing

Solscan is currently reporting that network throughput is around 3,735 transactions per second (TPS). Additionally, there have been 132 billion transactions on the network cumulatively.

However, the charts show a steep decline in transaction success rate on Jan. 12. This could indicate that the network is suffering from performance issues again.

On Jan. 11, it was also reported that there had been a recovery in Solana NFTs. Furthermore, the total floor value of Solana’s NFT ecosystem is now worth more than $470 million. It, too, has returned to pre-FTX levels.

According to Coin98Analytics, Solana is fourth in terms of active addresses over the past week, with 3.16 million. BNB Chain tops the list with almost 6 million active addresses in the last seven days. Ethereum was in fifth place according to these figures.

Solana’s recent performance was largely attributed to the airdrop of the meme coin BONK. The hyped memecoin slumped 80% in a week, proving it was a pump and dump.

Nevertheless, Solana co-founder Raj Gokal was back defending his baby on Jan. 12.

“Still seeing a lot of defending and dunking from solana folks. fwiw I think we can move past that, and get back to dreaming hard about what can use the network’s insane performance and battle tested infra.”

Price Outlook

SOL prices are up a percentage or so on the day to trade at $16.26 at the time of writing. However, it has failed to add to the gains sending it to this level on Jan. 9.

SOL closed in on $17 early Thursday morning but could not overcome resistance there.

SOL/USD 1 month - BeInCrypto
SOL/USD 1 month – BeInCrypto

The coin is currently a painful 93.7% down from its peak price so the road to recovery will be a long one.

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Martin Young
Martin Young is a seasoned cryptocurrency journalist and editor with over 7 years of experience covering the latest news and trends in the digital asset space. He is passionate about making complex blockchain, fintech, and macroeconomics concepts understandable for mainstream audiences.   Martin has been featured in top finance, technology, and crypto publications including BeInCrypto, CoinTelegraph, NewsBTC, FX Empire, and Asia Times. His articles provide an in-depth analysis of...