Solana in the Crosshairs: Active Addresses Plummet to 12-Month Low
Solana's network activity just hit a grim milestone—active addresses cratered to their lowest point since November 2024. The so-called 'Ethereum killer' is looking more like a patient on life support.
Where did all the users go? Transaction volumes tell part of the story, but the real pain might be lurking in SOL's fading institutional appeal. Even the degens are getting picky these days.
Meanwhile, VC-backed chains keep printing 'partnerships' like monopoly money—because nothing says adoption like a press release and a 20% token dump. Solana's tech deserves better, but crypto winters have a way of separating the builders from the bagholders.
Market struggles and investor criticism
According to analyst Rex Capital’s post on X, a few key issues are the basis for Solana’s recent problems. He wrote, “Solana is failing for a few reasons. 1) failure to reduce inflation 2) size of the ongoing unlocks exacerbated by the refusal to reduce inflation 3) 99.9% of people got burned on memes (not me obviously) 4) no popular perp DEX, got f*cked by Hyperliquid 5) no prediction market took off on the network 6) failed to become the destination chain for stablecoin liquidity.”
Solana is failing for a few reasons..
1) failure to reduce inflation
2) size of the ongoing unlocks exacerbated by the refusal to reduce inflation
3) 99.9% of people got burned on memes (not me obviously)
4) no popular perp DEX, got fucked by Hyperliquid
5) no prediction…
His comments are a reflection of those frustrations felt by many a trader and developer lately. Without popular perpetual trading platforms or prediction markets, Solana has fallen behind. Continuous token unlocks and rising inflation have also made investors more conservative, which slows down any short-term price recoveries.
Solana still holds a strong market position
Despite the decline, Solana remains in a strong position in Layer-1. According to Token Terminal, there are 44.1 million monthly active addresses, hence making Solana have 18.8% of the total user activity across blockchains. The number of active users on BNB Chain leads with 55.7 million, followed by the NEAR Protocol with 40.9 million. Others include Tron with 21.3M, Aptos with 18.7M, and Sei Network with 12.8M.
More established networks like Bitcoin, Polygon, and ethereum still bring in consistent users, though these are behind more modern high-activity ecosystems. As such, Solana remains one of the top performers in terms of user base, even in the context of this slowdown.
ETF inflows and market sentiment
According to Sosovalue data, the net inflow of Solana’s ETF received $18.06 million, pushing its net asset value to $574.42 million. Meanwhile, the SOL price remained stable at $153.75, indicating investor confidence despite slower inflows.
ETF inflows peaked above $70 million between late October and early November, particularly on October 28 and November 3. Since then, activity has cooled, showing smaller daily volumes. Yet, the total ETF assets continue to rise, indicating continued accumulation even as short-term sentiment softens.
Treasury stocks under pressure
Analyst Ted highlighted declining valuations in Solana-linked treasury companies. In an X post, he said, “I thought the $SOL chart was looking bad. But then I saw the chart of Solana Treasury companies.” He described the situation as an endless dump with no buyers or even a dead cat bounce.
I thought the $SOL chart was looking bad.
But then I saw the chart of Solana Treasury companies.
Endless dump with no buyers or even a dead cat bounce. pic.twitter.com/e6X2gkhOTW
In his chart analysis, he highlights the heavy declines in firms such as Sol Strategies Inc., which fell from C$55 to C$4.24, and DeFi Development Corp., which dropped from $70 to $8.33. These moves mirror broader weakness in Solana’s corporate ecosystem and reduced market confidence.
Also Read: Phantom CEO Emphasizes Solana Focus Over IPO and Blockchain
