TL;DR
- Solana’s active addresses have plummeted 50% since October 2024, from 18.5 million to 8.4 million in February 2025.
- Despite the drop in user engagement, the price of SOL has risen from $161.34 to $197.86 in the same period, indicating strong investor interest.
- Market indicators, including the RSI and open interest, show bearish trends, but the price has remained relatively stable, suggesting confidence from long-term holders and investors.
The Solana blockchain is currently facing an intriguing trend: although its active address count has significantly dropped, the price of its native cryptocurrency, SOL, has been steadily increasing. This contradiction sparks curiosity about what is driving the price upward despite a clear decline in network activity.
Over the past few months, Solana has experienced a substantial decrease in active addresses. Data from market analyst Ali reveals that active addresses fell from 18.5 million in October 2024 to just 8.4 million by February 2025, a remarkable 50% drop. This reduction raises questions about the broader trend of user engagement and how it might affect Solana’s long-term growth.
In the same period, the price of Solana increased from $161.34 to $197.86, reflecting the strong confidence of investors in its value. This price surge despite fewer users suggests that the asset may be driven more by speculation or a small group of dedicated investors rather than broad network participation.
Solana’s Price Holds Firm
The relationship between network activity and price is typically direct, with increased usage driving price gains. However, in the case of Solana, a significant decline in user engagement has not translated into a price drop. This might indicate that SOL’s price is being influenced by more than just network interactions, possibly by large investors or long-term holders. Even with fewer active addresses, Solana has maintained a relatively high price, experiencing resistance at $180 and $200 levels but finding strong support at $170 and $160.
Market Signals Suggest Caution
Despite the upward price movement, some technical indicators show that caution is needed. The Relative Strength Index (RSI) has dipped to 32.16, signaling that SOL may be approaching oversold conditions, which could present a potential buying opportunity if the market stabilizes. However, continued declines in the RSI could lead to further downward price pressure. The Money Flow Index (MFI) at 39.98 suggests a lack of new investment, while the drop in open interest points to decreased trader participation, signaling a bearish sentiment in the short term.
Ultimately, while Solana’s price has shown impressive resilience, there are mixed signals about its future. The next few weeks will be crucial in determining whether the blockchain can regain user engagement and sustain its price momentum or whether market pressures will take a toll on its future performance.
