Cypher
(BTC) Bitcoin News TodayCrypto AdoptionCryptocurrencyEthereum (ETH)NewsOn-chain Data / AnalysisPolygon (MATIC)Solana (SOL)Trading

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.

📰 Also read:  Bitcoin Targets $30,000 Price Level Following Fed's Announcement

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.

Cypher

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.

📰 Also read:  White House Officials Pushing for 30% Crypto Mining Tax, Cites Environmental Concerns

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.


Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.

📰 Also read:  CFTC Chair Urges Crypto Exchanges To Protect Customers' Investments

Cypher

Bradley Nelson

Bradley Nelson is a US based cryptocurrency news writer for Tokenhell, he helps readers stay up to date with the latest trends and news from the blockchain and crypto world. Bradley has been a crypto enthusiast since 2018.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Skip to content