Transactions on Solana explode – Time for a network revival?

  • The number of transactions occurring on the Solana network surged materially.
  • Sentiment around the Solana network declined.

Solana [SOL] has been seeing a surge in activity on its network since the beginning of the year. Due to this, its network saw a massive uptick in overall transactions occurring.

Activity on the Solana network

Solana is experiencing a resurgence in activity after a period of stagnancy. Transaction volume exploded, with the 7-day average of non-voting transactions reaching a two-year high of 38.37 million.

Daily transactions have consistently hovered near 40 million since June began, indicating a significant increase in network usage. This surge in activity is accompanied by a growing user base.

Source: X

On the 12th of June, Solana witnessed its third-highest day ever in terms of active accounts, with over 1.23 million unique wallets interacting with the network.

Moreover, the DeFi sector on Solana was also observed to be thriving. Data from Dune Analytics reveals that the weekly number of traders on Solana-based DEXs reached a record high of 3 million earlier in June.

Source: Dune

Despite a slight dip from its May peak, the total value locked (TVL) on the Solana DeFi projects remained comfortably above $4 billion, according to data provided by DefiLlama.

This indicated continued investor confidence in the Solana DeFi space.

Raydium, the largest DEX on Solana, continued to be a dominant player, holding roughly two-thirds of TVL and trading volume amongst all Solana DEXes.

Source: DeFi Llama

Social activity declined

Even though the usage of the Solana network was on the rise, there were some problems being faced by the network on the social front.

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AMBCrypto’s analysis of Santiment’s data revealed that Social Volume around Solana had fallen materially over the last few days.

Coupled with that, Weighted Sentiment had also declined, implying that the number of negative comments around Solana had increased compared to the positive ones.

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This waning interest in Solana on social platforms could hinder the potential growth of the Solana network in the long run. At press time, SOL was trading at $137.54 and its price had fallen by 8.70% over the last week.

The volume at which it was trading at had also declined by 28% during this period.

Source: Santiment

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