Solana Addresses Surge 20% Despite Price Drop

Solana's network activity has surged, with the number of addresses holding at least 0.1 sol reaching over 11.1 million, marking a new high in months. This increase in network participation suggests a growing interest and adoption of the Solana blockchain. The number of addresses with 0.1 SOL or more rose from around 9.2 million in late December to over 11 million by 21 March, indicating sustained interest in the Solana ecosystem despite the asset’s price slipping from above $180 in January to around $129.54. This divergence suggests that smaller retail participants have continued to accumulate SOL, possibly in anticipation of longer-term gains.

However, despite this rise in activity, the total value locked (TVL) in the Solana network has decreased from its yearly peak above $11 billion in January to just under $6.4 billion recently. This decline alludes to a contraction in DeFi capital allocation, driven by both macro volatility and reduced incentive programs. Nevertheless, the current TVL level is significantly higher than the pre-bull market base of 2023, indicating that Solana’s DeFi ecosystem retains meaningful traction across the board.

Ask Aime: Why has Solana's network activity increased while the total value locked decreases?

At the time of writing, SOL was trading below both the 50-day and 200-day moving averages, hinting at a broader bearish structure. However, the Accumulation/Distribution Line highlighted consistent upward movement, suggesting that smart money might be entering at current levels. With relatively low volume and resistance around $135, price action could remain rangebound in the short term. However, sustained on-chain growth could act as a tailwind for future rallies. Solana has been exhibiting strong foundational demand, despite speculative capital pulling back. If the price eventually aligns with network strength, SOL may gear up for another rally on the charts.

According to the analyst's forecast, Solana could reach as high as $200, driven by its unmatched transaction speed and vibrant developer community. The launch of futures ETFs has also been cited as a potential catalyst for price growth, as it makes investing in Solana more accessible to a wider audience. Institutional interest in Solana has been on the rise, with major players showing confidence in the network's technology and future prospects. This increased institutional involvement could provide the necessary support to drive Solana's price towards the $200 target.

However, Solana has faced significant challenges in recent months, with network activity declining by nearly 50% since January 2025. Active addresses have dropped, and the overall network engagement has been on a downward trend. This decline in activity raises questions about the sustainability of Solana's price growth and its ability to maintain its competitive edge in the cryptocurrency market. The path to $200 for Solana is not without obstacles. The cryptocurrency market is highly volatile, and external factors such as regulatory changes and market sentiment can significantly impact Solana's price. Additionally, competition from other blockchain networks, such as Ethereum, poses a threat to Solana's market position. Despite these challenges, the growing user base and institutional interest in Solana suggest that the network has the potential to overcome these hurdles and achieve its price targets. The market will continue to monitor Solana's performance and the evolution of its network to gauge its future prospects.