Data shows that since the beginning of 2022, the number of active addresses in the Solana network has increased by 58%. Therefore, Solana outperformed competitors Ethereum and Binance Chain in terms of active address growth.
Active addresses in the network are an indicator of digital currency customer growth. During the bear market period, the number of Solana active addresses increased, which shows everyone's increased interest and participation in the SOL crypto community.
Although the active addresses of Solana increased by 58%, the BNB chain decreased by 17.9%, and the Ethereum decreased by 51.8%.
Solana it became the only major Tier 1 digital currency with high participation and activity among IP addresses. Solana has suffered a series of outages and shutdowns over the past year due to technical glitches and high NFT volume on the blockchain.
Despite the hardships, the Solana network has seen tremendous growth and has left peers like the BNB chain and Ethereum behind.
The total amount locked (TVL) in the Solana network has fallen by almost $2.9 billion compared to the $6 billion in May 2022, which does not reflect the trend of its address activity. This perception illustrates that address activity is not improving. Solana has room for further growth as the number of participants, inflows to the network, and inflows of counterfeit coins also TVL.
Due to the discrepancy between address activity and altcoin network TVL, Solana price is still at risk of crashing. Based on observations, Solana appears that the price chart is ready to rotate the trend.
Assuming the Bitcoin market falls below the 200-week moving average of $2,259, Solana prices could follow suit. This remains a key level for the asset. Below that level could open Solana's weekly support lines at $38, $31 and $25. The price of BTC fell to the level of 2259 US dollars, and the price of Solana may drop by 40%.
