Solana Price Jumps, But Network Adoption Remains Weak

On-chain knowledge reveals the Network Growth indicator has continued to fall for Solana not too long ago, an indication that adoption of the asset has remained weak.

Solana Network Growth Has Been Declining

According to knowledge from on-chain analytics agency Santiment, SOL’s latest value restoration has come regardless of a drop within the Network Growth. This metric measures the weekly complete variety of addresses which can be coming on-line on the blockchain for the primary time. A pockets comes “on-line” on the community when it participates in some sort of transfer activity. Thus, the wallets that the Network Growth is counting are those which can be making their first transaction on the community.

When the worth of the Network Growth is high, it signifies that numerous addresses are being created on the blockchain. Such a pattern generally is a signal that an inflow of customers is going on. On the opposite hand, the indicator being low means that there isn’t a lot new address generation happening on the community, which generally is a potential indication that the chain isn’t attracting contemporary buyers.

Now, right here is the chart shared by Santiment that reveals the pattern within the Solana Network Growth during the last couple of years:

As displayed within the above graph, the Solana Network Growth has witnessed a drawdown not too long ago, although the SOL value has made some restoration since its December low. This means that the bullish value motion has been unable to carry contemporary consideration to the cryptocurrency.

Historically, rallies have typically wanted the incoming of latest buyers to be sustainable, because it’s the elevated buying and selling exercise that gives them with the gas to go on.

In the chart, Santiment has highlighted the case of a rally the place this requirement wasn’t met. The Network Growth was initially at a major stage, however as this value surge from 2025 performed out, the metric’s worth plummeted. This might be a possible issue behind the rally ultimately operating out of momentum.

In late 2024, the other circumstances had been current, because the Network Growth shot up alongside the Solana bull run, implying adoption backed the value appreciation. Considering these previous instances, it’s attainable that the indicator might need to reverse its trajectory if SOL’s restoration has to final.

The newest downward transfer within the Network Growth can also be not the one growth SOL is coping with proper now. From the graph, it’s seen that the indicator has gone by means of a long-term downtrend since its high in November 2024.

Back then, the metric had a price of 30.2 million, however at the moment, the determine has dropped to only 7.3 million. It now stays to be seen whether or not the lengthy decline within the adoption of Solana will proceed or if a turnaround will seem.

SOL Price

Solana recovered again to $144 on Sunday, however the coin has retraced to open the week as its value is again at $139.