Solana Active Addresses Drop 50% As Price Holds Strong: Why?

The number of active addresses on the Solana ($SOL) network has dropped significantly in recent months, despite an increase in Solana price.

Market analyst Ali reported that active addresses fell from 18.5 million in October 2024 to 8.4 million in February 2025, marking a decline of over 50%. However, the price of $SOL has risen from $161.34 to $197.86 in the same period.

Network Activity Declines After October Peak

According to the data, Solana obtained the highest network activity on October 22, 2024 with 18.54 million active addresses. This period of increased engagement coincided with a $SOL price of $161.34, suggesting a strong correlation between network usage and price movement.

By February 15, 2025, active addresses had fallen to 8.37 million, reflecting a sharp reduction in user participation. This drop raises questions about changing user behavior and network engagement trends over time.

Solana Price Gains Despite Fewer Active Users

$SOL price grows while active users decrease, which probably indicates that growing $SOL value is a result of a few engaged consumers. Thus, although the network has not experienced increased activity, the price of $SOL has gone up to $197.86 by mid February.

This is a positive sign as far as investors are concerned, even though the on-chain activities have slightly gone down.

As it can be seen in the chart above, price and active addresses are highly correlated over certain periods of time. In relative terms, both were on the rise, deemed by reflecting strong network growth and market confidence in October and November, 2024.

From that high, price resistance occurred while the number of active addresses declined in December. This may signify that a large number of low value transactions are made by a few users or trading is based on speculation to affect the price.

Solana Price Technical Indicators Show Bearish Trends

The Relative Strength Index (RSI) is at 32.16 which is slightly below the oversold level of 30. When the value of RSI is below this level it can be interpreted that it is a buy signal. But if selling continues, then it will be seen to increase autoregressive and this will take the price down.

$SOL 1-day trading chart | Source: tradingview

The Money Flow Index (MFI) is currently at 39. 98 meaning that there is low money flow out from $SOL.

Resistance levels that may be applied are $180 and $200 while the support levels are $170 and $160. If RSI crosses 40 and price remains above $180, it will be a hint towards a recovery.

Open Interest Sees a Decline

Total open interest has reduced by 2.23% over the last 24 hours. With respect to $SOL’s value and perpetual open interest has reduced by 2.25%. A decline in OI is an indication that there is a low level of participation from traders or investors.

$SOL open interest chart

According to the data, the majority of Solana’s derivatives are traded on Binance. They have a volume of $1.1 billion, Bybit, $819.3 million, and OKX $382.5 million. This is because the focalization of OI on these platforms indicates that altering the positions of traders in Binance and Bybit platforms would result in large changes.

Technical indicators show bearish signals on Solana price, with RSI near oversold levels and declining open interest. However, if $SOL maintains support above $170 and OI starts increasing again, a potential price rebound could occur.