Solana (SOL) Marks 5 Years: What’s Next for the Blockchain Giant?

Solana (SOL) Activity Declines: What’s Behind the Drop in Active Addresses?

Solana (SOL) Marks 5 Years – On Sunday, Solana (SOL) celebrated its 5-year anniversary, marking a significant milestone in its journey as the sixth-largest cryptocurrency by market capitalization. The event was acknowledged by co-founder Anatoly Yakovenko on social media, with a shout-out to those who celebrate “Solana 0 block day.” Several key projects originating from the network, such as Phantom Wallet and the memecoin launchpad Pump.fun, also highlighted the occasion.

Declining Activity on Solana Network

Despite the anniversary celebration, SOL has experienced a downturn in activity. The number of active addresses has steadily declined since its peak in November, and March is on track to see even fewer active users compared to February. This decline is likely linked to the decreasing popularity of Pump.fun, the memecoin launchpad that initially gained traction in 2024. After a meteoric rise, reaching $100 million in cumulative revenue in just 217 days, Pump.fun has suffered a loss in engagement. High-profile memecoin scandals, including one involving the President of Argentina, have led to a significant drop in the platform’s momentum.

On Saturday, only 0.66% of tokens graduated to Raydium from the launchpad, marking the lowest percentage since its launch. Despite these setbacks, SOL has seen a remarkable recovery since its FTX collapse in November 2022, when it dipped below $10. The price has now surged back to around $127, with Solana co-founder Raj Gokal calling the FTX crisis a “crucible moment” for the blockchain.

Firedancer Launch Nears

Looking ahead, Firedancer, a high-performance Solana client from Jump Crypto, is expected to be a pivotal upgrade. Designed to enhance the network’s transaction processing capabilities and improve resilience, Firedancer is expected to go live by the end of Q2 2024. This upgrade will be crucial for SOL’s goal of reaching 1 million transactions per second (TPS).

Solana may also be included in ETFs in 2024, with asset managers already filing proposals. Analysts have pointed out a high likelihood for SOL, alongside Litecoin, Dogecoin, and XRP, to secure ETF approval this year.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.