Solana users fall to lowest level in more than 2 years

The Layer 1 blockchain Solana is continuing to lose momentum, with the number of daily active addresses hitting the lowest point since The Block started tracking the data in late 2020.

The number of daily active addresses on Solana, using a seven-day moving average, plummeted to around 204,000 on Aug. 31, according to The Block’s Data Dashboard.

The 7DMA metric shows the average value of a data point over the past week and can help spot trends.

The decline in Solana's active users has intensified following crypto exchange FTX's bankruptcy last November and the Securities and Exchange Commission's depiction of Solana's native SOL token as a security.

Solana's decline

"The Solana ecosystem was already seeing a decline in active users prior to the collapse of FTX, but the fact that the blockchain had such strong ties to the exchange and Alameda Research [FTX’s sister trading firm] hurt its reputation a bit," said Rebecca Stevens, data analyst at The Block Research. "The SEC alleging that SOL is a security also hurt the token's price and has caused it to be delisted in the U.S. on several platforms like eToro and Robinhood," she added.

The price of SOL currently stands at around $20, down about 7% in the past seven days, per CoinGecko data. Solana is currently ranked tenth in terms of total value locked, which currently sits at around $311 million, according to DefiLlama data.