The surge in daily active wallets comes despite the over 50% price decline the asset suffered in the wake of the FTX saga.
The daily active wallets on all major protocols on Solana have dramatically increased since the FTX collapse, surging by over three times at the end of December. The network registered this gradual increase despite the asset’s record price slump in November.
Tom Dunleavy, a senior research analyst at crypto-focused market intelligence provider Messari, recently highlighted the interesting development. Dunleavy shared a Messari chart to substantiate his claim.
SOL daily active wallets 3x pre FTX levels pic.twitter.com/5JjjkcRKKO
— Tom Dunleavy (@dunleavy89) January 6, 2023
The chart assessed the daily active wallets on eleven of Solana’s major protocols, including Mango Markets, Jupiter Aggregator, Lifinity, Raydrium, Stepn, and Orca. Data suggests a slight progressive decline in the active wallets immediately after FTX collapsed, which the network has reversed impressively.
The decrease ceased, and the network began registering massive surges in early December last year. This surge peaked in late December, leading to a cumulative value of 120K+ daily active wallets. This is over three times the value of 40K witnessed immediately before the FTX saga.
Additionally, data from DappRadar reveals an incredibly high increase in the unique active wallets (UAW) of some of Solana’s top projects in the past 7 days. Notably, MeanFi, a DeFi self-custody solution on Solana, has seen a 137% increase in UAW within the past week.
UAWs on Magic Eden, Solana’s most popular NFT marketplace, has surged by 9% in the past 7 days, with Raydium and Orca respectively witnessing surges of 299% and 117% within the same time frame. Trade volumes have also seen an increase.
BONK Social Activity Peaks Amid a Solana Rally
The surge is likely the result of renewed investors’ interest amid the increased social activity surrounding Solana’s meme coin Bonk Inu (BONK). The developers behind BONK recently burned all the 5 trillion tokens allotted to them, representing 5% of the asset’s total supply, as the price dipped by 50% on Thursday.
Meanwhile, Solana has exhibited some resilience to the swings of the bears in the past five days. The asset staged a massive rally on January 2, which pushed it to a 3-week high of $14.24% on Wednesday. The asset gained 45% in two days. The FTX fiasco impacted SOL more than most assets due to the financial ties between Solana Labs and FTX. The asset crashed by over 50% in the wake of the saga.
The recent rally helped recover some of the losses of the previous dump. Solana currently trades at $13.24, up 35.72% in the past week, making it the largest-gaining asset among the top 100 most prominent tokens within the time frame.