Solana’s Number of Active Addresses Spikes In May; Here’s Why
The decentralized and scalable blockchain platform (Solana) saw an unprecedented surge in active and new addresses early in May. During this period, the layer-1 network experienced a significant influx of new users, surpassing that of the Bitcoin and Ethereum networks.
Solana Onboard More Wallet Addresses
As one of the largest blockchains in the Ethereum ecosystem, Solana has seen a high influx of new and active wallets into its ecosystem. This noteworthy development signifies an influx of capital into Solana and indicates the acquisition of new users for the platform.
On-chain data reveals that the Layer 1 network witnessed a notable milestone on Monday, as its seven-day moving average for new addresses soared to 304,640. This figure represents the highest number recorded since June 2022, showcasing a remarkable surge in new address creation.
The data indicates that the number of new addresses added during the first half of May has surpassed the total count observed on the protocol throughout April. This surge coincides with a period where both the Ethereum and Bitcoin networks experienced a notable increase in transaction fees, reaching three-month highs last week.
So far in the month, SOL, BTC, and ETH have experienced price falls of 8.6%, 2.6%, and 7%, respectively. However, the increase in the number of new addresses on the Solana network is considered a bullish uptrend for SOL.
Meanwhile, the Bitcoin network saw the lowest drop in active addresses that have sent or received funds since July 2021.
Solana Rises Amid Ethereum Troubles
According to a top research analyst, the initial upswing in new addresses on the Solana network can be attributed to the rising transaction fees on Ethereum, prompting users to explore alternative platforms for their transactions. However, the analyst also highlighted that the subsequent surge in new addresses could be linked to the Ethereum network’s finality concerns.
Notably, a similar increase in new addresses is observed across Ethereum-scaling solutions like Polygon, indicating a broader trend within the ecosystem.
Referring to two incidents last week where Ethereum’s beacon chain experienced temporary block finalization halts, the researcher added that Solana had encountered significant criticism for its outage issues. Therefore, the recent troubles faced by the Ethereum network might provide a valuable perspective on the challenges faced by Solana.
On May 13, Ethereum core developers released a software update to address the Ethereum finality issues impacting the network. These updates aim to rectify the concerns and restore stability to the network, ensuring a smoother and more reliable operational environment for Ethereum users.
Accordingly, patches have been released for two notable Ethereum clients, Prysm and Teku, to enable them to update their infrastructures. After experiencing substantial declines last year during the FTX crypto exchange collapse, Solana’s native SOL token has demonstrated an impressive recovery.
The token has surged by 109% year-to-date, showcasing a significant rebound in its value.
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