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Data from October 9 indicates that while Solana’s monthly active addresses exceeded 100 million, more than 86 million wallets on the platform are inactive, raising doubts about the reliability of user engagement statistics, as per blockchain data from Artemis Terminal.
This significant rise originates from 509,000 active addresses noted at the beginning of 2024. Nevertheless, despite this growth, a majority of these wallets are not utilized, prompting skepticism regarding the credibility of these figures.
An In-Depth Examination of User Engagement in Solana Wallets
Insights from the Solana analytics platform Hello Moon reveal that over 86 million Solana wallets have maintained a balance of 0 SOL in the last month.
Furthermore, approximately 15.1 million wallets held less than 1 SOL, while around 1.5 million contained under 10 SOL. This situation raises concerns about whether these active wallets genuinely represent user interest.
Source: Hello Moon / Solana Wallet Balance of Daily Active Users
Despite the prevalence of empty wallets, Solana has still seen growth in other significant metrics, such as the generation of SPL tokens and the establishment of new accounts on the network.
Following a slowdown in September, the network experienced a notable increase in the daily creation of SPL tokens, with at least 17,000 new tokens generated daily since September 26.
Much clearer with this data from Hello Moon
Of the 5M “DAU’s”, 4.5M hold 0 $SOL (green bar), which indicates that they are single-use generated wallets utilized by volume/wash trading bots.
Notice the sharp rise at the end of August. https://t.co/NvvNpa4t8D
h/t @WelfBrandolf https://t.co/4bS94TiJ3a pic.twitter.com/00SNHTAToc— Wazz (@WazzCrypto) September 15, 2024
SPL serves as the token standard for Solana, akin to Ethereum’s ERC-20.
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On October 8, Solana recorded the creation of over 10 million new accounts, more than double the figure from the previous day.
Despite this activity, critics contend that bots may be inflating wallet counts rather than actual users.
Solana’s Active Metrics and Competition from Other Layer-1 Networks
In late September, Dune Analytics disclosed that the average transaction fees on Solana increased to $0.02, still significantly lower than Ethereum’s median gas fee of $3.
As of October 9, Solana stands as the third-largest blockchain for DeFi, with a total value locked (TVL) of $5.41 billion, trailing Ethereum’s $44.7 billion.
Despite its status as a prominent Layer-1 network, Solana encounters intensifying competition from other scalable Layer-1s such as the Sui Network.
Analysts from K33 Research propose that Sui’s architecture and forthcoming game console launch could compete with Solana in terms of performance and user engagement.
Solana is recognized for its rapid transaction speeds and low fees. However, Sui aims to enhance these advantages by expanding into various sectors, particularly gaming.
As the number of Solana wallets increases, the network faces the challenge of converting these statistics into substantial user engagement.
The post 86 Million Active Solana Wallets are Empty: Data Shows appeared first on Cryptonews.
