- On-chain activity on the Solana (SOL) blockchain dropped in the month of May.
- Solana has recorded more than five million new addresses in May 2023.
- While the number of addresses climbed on Solana, the altcoin’s price declined.
On-chain activity on the Solana (SOL) blockchain dropped in May, despite a significant increase in new addresses joining the blockchain’s network. New SOL users joining Solana in May have already surpassed the new participants it recorded in each of the past months in 2023.
Solana is one of the prominent blockchains for building smart contracts. It is so popular among blockchain users that it is considered one of the Ethereum competitors. Data from The Block, a blockchain analytic tool, shows that Solana added more than five million new addresses in May 2023, the highest number since October 2022.
Cryptocurrency analysts use the number of new addresses to measure the adoption rate of any blockchain product. In most cases, as the number of new addresses increases, the value of a cryptocurrency and other growth indicators follow suit. Solana’s situation is unique this time around.
While the number of addresses climbed on Solana, the altcoin’s price declined. So far, SOL’s price has dropped by 13% since the beginning of May 2023. The price started the month at $21.66, but as of the time of writing, it had dropped to $19.77.
At the current price, SOL is hovering around crucial support, which has held on for the past three weeks. Breaking through this support could see SOL’s price drop lower to $18.76. If that price breaks below that level, we could see SOL drop even lower toward $16.01, a support level it established on March 10, 2023.
Solana has faced a few challenges blamed for its abysmal performance. Some of the blockchain’s drawbacks result from the outages and challenges validators face. However, developers are working toward resolving the issues that have recently plagued the blockchain. They have taken a step by sharing an update for mainnet beta validators, requesting them to upgrade to the newly released Mainnet-v1.14.17 version.