The daily active address count for the Solana [SOL] ecosystem increased significantly, surpassing that of other major networks like Ethereum [ETH] and Polygon [MATIC].
The Token Terminal readings confirmed this behavior. The number of daily active users (DAUs) increased 9x as of 3 March after plummeting as a result of a significant outage on February 26.
The network’s transaction costs increased dramatically as a result of the increase in users, going from $2.3k to $51.1k. With its first significant network outage in 2023, which lasted over 20 hours, Solana received a lot of negative news. Due to the platform’s increased number of outages, it received a lot of criticism on social media, and FUD appeared to have spread across the neighborhood.
Early indications suggested that things could be improving, though. The recent increase in DAUs may have several causes, including the expansion of the NFT market. NFT sales volume on the chain jumped from its post-outage low of $34.68k to $2.7 million at press time, according to CryptoSlam. Both the number of distinct customers and vendors increased considerably.
In addition, the hoopla surrounding Helium Network’s switch to the network may have convinced investors to sell their Shares and switch to Solana. Later this month, on March 27, the decentralized wireless communication network is anticipated to migrate.
According to Santiment statistics, investors more upbeat about SOL as the coin’s weighted sentiment increased. Although it should be mentioned that the measure was still negative, the rebound was amazing. On the other hand, throughout the course of the week, development activity drastically decreased. Given the excitement around the imminent Helium Migration, this was a bad indication.
According to CoinMarketCap statistics, SOL had a minor increase of 0.18% over the previous 24 hours and was trading at $21.24 at the time of publication.
As seen by the huge increase in the number of long positions placed for SOL in the previous two days, according to data from Coinglass, bullish feelings have returned.