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Key Insights:
- Solana’s active addresses fell from 18.5M in November to 8.4M in February, a 54.6% decline.
- Total SOL transfer volume dropped 98.7% from $2 billion in November to $26 million in February.
- Despite negative sentiment, Solana saw $150 million in inflows, surpassing Bitcoin, Ethereum, and Arbitrum.
Solana price experienced two significant declines since November 2024, including a decrease in active addresses by 54.6% together with a 98.7% reduction in transfer volume. However, in a time of losses, Solana still succeeded in accumulating $150 million more than Bitcoin and Ethereum combined.
Market volatility remains high as FTX plans the March 1 release of 11.2 million SOL tokens that might influence institutional investment strategies and market liquidity. With Galaxy Digital joining other firms that are interested in acquiring these tokens.
At the same time, month-to-month validator revenues rose significantly due to the $550 million fee activity in January, which created new hurdles for the Solana user base.
Market fluctuations have also intensified, with Solana’s price dropping by 9.51% in the past 24 hours to $160, but its trading volume surged to $6.31 billion to mark a 51.75% increase.
Solana’s Network Activity Declines Sharply
The number of active addresses on the Solana network has experienced a substantial reduction during the recent months. According to data from Glassnode, Solana maintained 18.5 million active addresses during November 2024.
By February 18th of 2025, only 8.4 million accounts remained active, which signified a 54.6% decrease compared to the initial total.
The price movement of SOL appears to not directly correlate with the number of active addresses operating on the Solana network.
On October 22, 2024, Solana registered 16.4 million active addresses at a price of $24.15. However, as of February 18, 2025, the Solana price increased to $82.44 after active addresses decreased by half.
The decreased address activity indicates that network-related problems and cryptocurrency blockchain competition might be responsible for lowered user participation.
Solana’s Transfer Volume Drops by 98.7%
According to Glassnode data, the transfer volume of SOL exceeded $2 billion in November 2024 yet decreased to only $26 million by February 18, 2025. This marks a total Solana blockchain transfer decline of 98.7% during three months.
During the peak on November 23, 2024, 1.88 billion SOL was transferred, and the price of the token was $24.15. By February 18, 2025, the transfer volume on Solana also decreased to 26.42 million, while its price increased to $82.44.
Most likely factors behind the dramatic decrease in platform activity include diminished user participation, explorer network challenges and alternative blockchain platforms gaining more popularity.
Solana Records Strong Inflows Despite Negative Sentiment
Despite the decline in network activity, Solana continues to experience vigorous capital inflows while its network activity suffers a reduction during the previous week.
The analysis from Artemis, shared by Crypto Banter on X, indicates Solana received approximately $150 million in money flow. The total inflows on Solana rank after Base and above Bitcoin, Ethereum and Arbitrum networks.
Bitcoin obtained around $50 million, while Ethereum attracted $25 million and Arbitrum received $10 million. Meanwhile, OP Mainnet lost around $200 million in capital flow. Investors maintain their confidence in Solana, even though they remain concerned about its network activity due to ongoing blockchain investments.
Circle Resumes USDC Minting on Solana
Circle has resumed minting USDC on Solana following a seven-day pause based on Spot On Chain data reports. The seven-day duration of the minting halt on Solana marked the longest interruption in this process since Circle introduced USDC on the network.
USDC minting by the company reached 7.5 billion during the first two months of 2025, when 6 billion was issued in January, followed by another 1.5 billion in February.
The latest minting operation, which created 250 million of the coins, took place five hours ago and was worth $249.975 million. Minting operations stand still, possibly because Circle conducts different liquidity strategies or experiences changes in USDC usage patterns across Solana.
Currently, Circle continues minting at regular intervals because previous transactions occurred every three to four days before February.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
