Layer One blockchain Solana is continuing to lose momentum, with the daily active addresses on it declining to around 204,000 on the 31st of August.
This is the platform’s lowest number of daily active users since late 2020. Solana losing momentum, users at 2-year low.
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Solana's daily active addresses have hit a significant low, reaching the lowest point in two years. According to data from The Block's Data Dashboard, the number of daily active users on Solana fell to 204,000 on August 31st, 2021. The decline in Solana's active users can be attributed to various factors, including the collapse of the cryptocurrency exchange FTX and the United States Securities and Exchange Commission's decision to classify the platform's native SOL token as a security. It's worth noting that the Solana ecosystem was already experiencing a decline in active users even before the collapse of FTX.
However, the blockchain's close relationship with the exchange and its sister concern, Alameda Research, did have an impact on its reputation. The 7DMA metric is a useful tool for identifying trends and displaying the average value of a data point over a week.“The Solana ecosystem was already seeing a decline in active users prior to the collapse of FTX, but the fact that the blockchain had such strong ties to the exchange and Alameda Research [FTX’s sister trading firm] hurt its reputation a bit.”
The Securities and Exchange Commission’s assertion that SOL is a security also had an impact, with the SOL token delisted on several major US platforms.
“The SEC alleging that SOL is a security also hurt the token’s price and has caused it to be delisted in the U.S. on several platforms like eToro and Robinhood.”
Solana's current price is at $20, marking a 7% decline over the past 7 days, according to data from CoinGecko. However, the platform still ranks 10th in terms of total value locked at $310 million.
Despite the recent price drop, there have been positive developments in the Solana ecosystem. Visa has announced the expansion of its stablecoin settlement capabilities with USDC into the Solana blockchain. This integration is expected to offer high-speed performances and Visa has already added pilot programs with merchant acquirers Worldpay and Nuvei, utilizing the capabilities of the Solana blockchain.
“By leveraging stablecoins like USDC and global blockchain networks like Solana and Ethereum, we’re helping to improve the speed of cross-border settlement and providing a modern option for our clients to easily send or receive funds from Visa’s treasury.”
MakerDAO's CEO, Rune Christensen, has suggested that Solana's codebase could serve as the foundation for the company's future blockchain, NewChain. According to Christensen, Solana's adaptability, technical excellence, and resilience distinguish it from other blockchains, making it a highly promising base for NewChain.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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