cryptoglobe.com
The number of monthly active addresses on the Solana (SOL) network has reached 138 million this month, after seeing exponential growth throughout the year amid a wider cryptocurrency market recovery.
According to data from Artemis, Solana had around 13.8 million monthly active addresses at the beginning of the year, with the figure gradually growing until the Summer. Since August, the number of active addresses on the network exploded upward, from around 40 million at the end of that month to surpass 100 million in early October. The figure grew over 30% in the past month.
The rise in monthly active addresses comes as the total value locked (TVL) on Solana’s decentralized finance ecosystem surges, with data showing substantial inflows year-to-date. As CryptoGlboe reported, $2.36 billion of those inflows came from Ethereum, although ETH saw $1 billion of those funds return.
The data shows that only 2.7% of Ethereum’s TVL migrated to Solana year-to-date, with the second-largest network by market capitalization seeing $6 billion of net outflows so far this year.
Solana’s rise has nevertheless been notable this year, with its price significantly outperforming most other digital assets to the point that it’s nearly overcoming Binance’s BNB to become the fourth-largest digital currency by market capitalization.
The Solana ecosystem was negatively impacted by the collapse of FTX in November 2022. The exchange’s executives were well-known Solana proponents with large SOL holdings, with the collapse leading to a near 70% price drop for Solana amid broader market panic.
FTX’s collapse raised concerns about the sustainability of the Solana ecosystem, with estimates suggesting that about 20% of Solana-based projects then had received investments from FTX or its sister company Alameda Research.
Investors have since then reengaged with the Solana ecosystem, with projects like Pump.fun and decentralized cryptocurrency exchange Raydium seeing activity skyrocket over the last few months, as first reported by The Block.
Featured image via Unsplash.