Solana Price Weakens as On-Chain Activity Hits New Lows

Solana Faces Multi-Month Low On-Chain Activity Amid Price Decline and Market Uncertainty

  • Solana’s on-chain activity, including network growth and daily active addresses, has reached a multi-month low.
  • The token experienced price increases between March and April 2025 but has since faced downward pressure with declining user engagement.
  • Solana ETFs are viewed as a potential factor to attract institutional investment and improve liquidity.
  • Despite these prospects, Solana’s market capitalization has dropped 44% over two months, tempering investor enthusiasm.
  • Market participants await broader shifts in the cryptocurrency market, influenced by upcoming Federal Open Market Committee (FOMC) rate decisions.

The price of Solana has weakened significantly through 2025, leading investors to anticipate a potential new price bottom. Recent data shows that Solana’s on-chain activity is at a low point, indicating reduced user engagement and registrations. This decline in user activity includes drops in network growth and daily active addresses (DAA), key metrics that measure blockchain usage dynamics. These trends have persisted since price spikes observed around March and April 2025.

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According to a financial analyst named Teddy, “Solana On-Chain Activity Remains Weak. The current picture is different. Price is back near the lower range. But network growth & DAA remain at multi-month lows. This suggests the latest bounce is happening without new users and without real network expansion”. Data illustrates that the earlier surge in on-chain user numbers and activity during spring faded, leaving SOL’s network usage diminished for months.

In efforts to revive price momentum, Solana Exchange-Traded Funds (ETFs) are considered a potential catalyst. ETFs are investment funds traded on stock exchanges that can provide institutional investors access to cryptocurrency assets. Experts at Santiment suggest that such developments might attract large-scale investments, thus increasing SOL’s liquidity and market credibility. However, Solana’s market capitalization has fallen about 44% in the past two months, which has cooled investor enthusiasm despite ETF-related optimism.

Market watchers are also looking to broader macroeconomic factors. Forthcoming decisions by the U.S. Federal Open Market Committee (FOMC) regarding interest rates are expected to influence altcoin markets, including Solana. Many are waiting for these changes to fuel a wider market evolution before expecting significant price recovery in assets like SOL.

For further context, see the original discussion on Solana ETF impacts and on-chain activity analysis here and here.

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