Solana’s Active Addresses Soar, But SOL Takes a Dive 🤷‍♂️

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  • SOL-linked addresses have surged past 14.6 million, with the transaction count hitting a YTD high.
  • This surge has triggered significant liquidity outflows, though some investors see it as a buying opportunity.

Solana [SOL] on-chain activity has spiked, but the asset’s price hasn’t followed suit—dropping by $1.14 despite the increase. It’s like the universe decided to play a cruel joke on Solana, saying, “Here, have more users, but no price appreciation!”

At the time of writing, Santiment noted a rise in Active Addresses, which climbed to 14.63 million in the past 24 hours. That’s a lot of addresses, but apparently, the universe doesn’t care about numbers when it comes to crypto prices.

Typically, a sharp rise in Active Addresses, coupled with a 12.74% increase in volume to $3.75 billion, would hint at an incoming rally. However, as AMBCrypto observed, the opposite occurred in the past day. It’s like the market decided to take a leaf out of Douglas Adams’ book and just be plain irrational.

In fact, the rally outlook remains weak, with on-chain sentiment suggesting a likely downward stretch. It’s as if the market is saying, “Why have a rally when you can have a sulk?”

SOL investors return—But to sell

A wave of Returning Users has emerged in the market, with Artemis reporting that 1.1 million previously inactive users re-engaged in the past day. It’s like a high school reunion, but instead of catching up, everyone’s just there to sell their tokens.

This resurgence comes amid weakening sentiment, suggesting many of these users are likely selling rather than accumulating. It’s a bit like a fire drill, but instead of evacuating the building, everyone’s just evacuating their SOL.

This “rebirth” coincided with a sharp drop in Total Value Locked (TVL) as on-chain activity declined. Data from DeFiLlama shows that over $91 million worth of SOL exited the market in the past day, as investors began withdrawing previously deposited tokens from Solana-based protocols. It’s like a mass exodus, but instead of leaving a sinking ship, they’re leaving a sinking blockchain.

This trend matches the re-entry of users who may have initially staked their assets but are now returning to sell, indicating a shift from long-term holding to a short-term outlook. It’s like they’re all saying, “I’ll be back, but only to cash out.”

Daily Transactions spiked in the past 24 hours, reaching a new peak. Year-to-date (YTD) transaction count has now climbed to 116.66 million, while DEX activity also crossed a key milestone, surpassing $16.6 billion, according to Artemis. It’s like the market is trying to set records, but in all the wrong categories.

Spot investors see opportunity in dip

In contrast, spot market investors have taken a different path, accumulating more SOL over the past two days. It’s like they’re the only ones who read the “Don’t Panic” guide to crypto investing.

At the time of writing, they had spent $16.55 million purchasing SOL, according to CoinGlass. It’s a small amount in the grand scheme of things, but it’s a sign that some people still believe in the power of SOL.

Similarly, Artemis reported that Solana’s Bridge Netflow—which tracks SOL bought from other ecosystems—totaled $114,000, suggesting growing cross-chain interest. It’s like Solana is trying to make friends in other blockchains, hoping they’ll bring some much-needed positivity.

This inflow points to increased appetite from external investors, who may inject more liquidity into the Solana market. It’s like a lifeguard throwing a rope to a drowning swimmer, hoping it’s not too late.

A breakout may happen

Technical analysis on the 4-hour chart shows a strong possibility of a market rally in the near term. It’s like the market is setting up a trap, hoping to catch everyone off guard.

Currently, SOL is trading within a symmetrical triangle, a pattern that typically precedes a breakout. If a breakout occurs, SOL could retest the $158 level. With heightened momentum, prices could climb further by $10, reaching $168. It’s like the market is saying, “Just when you thought it was safe to sell, I’m going to rally.”

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2025-07-08 19:09