Solana active addresses have dropped to a 12-month low of 3.3 million, down from a January peak over 9 million, amid waning memecoin hype. Despite this, DeFi TVL remains strong at $10 billion, and Solana ETFs saw record inflows exceeding Bitcoin and Ethereum funds, signaling sustained institutional interest.
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Solana’s active addresses fell sharply due to reduced memecoin trading after the late 2024 frenzy.
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Network strengths like faster speeds and lower costs drove initial growth but highlight risks of over-reliance on trends.
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Solana ETFs recorded $12.5 million in inflows on Wednesday, pushing total assets under management past $369 million, with 12 straight days of positive demand.
Solana active addresses decline to 12-month low as memecoin buzz fades, yet ETF inflows hit records. Explore DeFi TVL growth and price trends for investment insights. Stay updated on blockchain shifts.
What is causing the decline in Solana active addresses?
Solana active addresses have plummeted to a 12-month low of approximately 3.3 million as of Thursday, a significant retreat from the January high exceeding 9 million. This downturn stems primarily from the cooling of the memecoin frenzy that propelled the network’s surge in late 2024. Solana’s appeal lay in its superior transaction speeds and reduced fees for memecoin launches and trades compared to Ethereum, but the trend’s momentum has waned, leading to progressive drops in user engagement throughout the year.
How are Solana ETFs performing amid network slowdowns?
The decline in Solana’s active addresses contrasts sharply with robust performance in its exchange-traded funds (ETFs). On Monday, Solana spot ETFs outpaced Bitcoin and Ethereum counterparts in inflows, recording $6.8 million net for the week ending November 10—the second straight week of positive demand. Bitwise’s Spot Solana ETF (BSOL) alone saw $12.5 million in inflows on Wednesday, elevating its holdings to $344 million, while Grayscale’s GSOL added $5.2 million, reaching $24.4 million.
According to data from DefiLlama, Solana’s total value locked (TVL) in DeFi protocols holds steady at around $10 billion, dominated by platforms like Jupiter, Kamino, and Jito. This resilience underscores the network’s diversification beyond memecoins into decentralized exchanges, prediction markets, and real-world asset protocols. On-chain metrics from Pump.fun indicate it now generates over $1 million daily and captures about 90% of the token launchpad market share, pointing to concentrated but persistent activity in select areas despite sector-wide slowdowns.
Derivatives data from Coinalyze shows balanced trader exposure, with open interest in Solana futures at $3.3 billion. Solana’s price hovered around $154.64 at publication, unchanged in the last 24 hours but down 4.6% over seven days and 25% in the past 30 days. Velte Lunde, Head of Research at K33, noted the successful U.S. launch of spot Solana ETFs, attributing BSOL’s rapid growth to its first-mover status and 0.20% fee, compared to GSOL’s 0.35% rate that has slightly curbed inflows.
Options trading for these ETFs recently launched on the New York Stock Exchange, enhancing institutional tools for risk management and yield. Teddy Furaso, President of Bitwise, highlighted this development, stating, “Options are now live on America’s largest Solana ETF, BSOL. Pretty remarkable. Institutional tools for risk management, yield enhancement, and efficient price discovery that are essential at scale.” Solana ETFs have now achieved 12 consecutive days of inflows, amassing over $369 million in assets under management since inception.
Frequently Asked Questions
What led to the surge and now decline in Solana active addresses?
Solana active addresses surged in late 2024 due to its efficient infrastructure for memecoin trading, offering faster speeds and lower costs than Ethereum. The subsequent decline to 3.3 million reflects fading enthusiasm for these trends, with activity normalizing after the peak. On-chain data shows ongoing participation on platforms like Pump.fun, but overall sector engagement has dropped progressively this year.
Are Solana ETFs a good sign for the network’s future despite lower active addresses?
Yes, Solana ETFs indicate strong institutional confidence, with record inflows like $12.5 million into BSOL on Wednesday surpassing Bitcoin and Ethereum funds. This momentum, including new options trading on the NYSE, supports diversification into DeFi and beyond, even as memecoin-driven active addresses fall. Total ETF assets now exceed $369 million after 12 positive days.
Key Takeaways
- Memecoin trends are volatile: Solana’s growth relied heavily on this narrative, but its decline shows the need for broader ecosystem development to sustain user activity.
- DeFi TVL remains robust: At $10 billion, led by Jupiter and others, it demonstrates Solana’s expanding role in decentralized finance despite address drops.
- ETF inflows signal opportunity: With over $369 million in assets and options now available, institutional adoption could drive long-term recovery and innovation.
Conclusion
The decline in Solana active addresses to a 12-month low highlights the fleeting nature of memecoin-driven hype, yet the network’s DeFi TVL stability at $10 billion and surging Solana ETFs inflows offer a counterbalance of optimism. As platforms like Jupiter and Jito lead diversification efforts, and institutional tools like ETF options enhance accessibility, Solana positions itself for enduring growth. Investors should monitor these shifts closely for strategic entry points in the evolving blockchain landscape.
