Solana, quieter makes it scarier?...Bullish sentiment remains despite sharp drop in active addresses

▲ Solana (SOL)

As the number of active addresses on the Solana (SOL) network has sharply declined from its recent peak, market attention is focused on whether this is a signal of price stagnation coupled with waning investor interest.

According to the cryptocurrency specialized media Bitcoinist on May 6 (local time), the Solana network showed high performance and adoption trends for some time, but recent user activity has slowed down. Santiment, a market intelligence and on-chain data analysis platform, stated that the number of active wallet addresses on Solana has significantly retreated from its recent highs.

Based on weekly charts, the number of active Solana network addresses increased to 5.01 million in early February but has recently decreased to approximately 2.89 million. Bitcoinist reported that the decrease in active addresses indicates a slowdown in market participation, raising questions about the current price structure. Solana was mentioned as the 7th largest asset by market capitalization in the cryptocurrency market amidst its price stagnation.

However, community sentiment has, in fact, strongly improved. According to Santiment, Solana-related sentiment has risen to its highest level since January, with 3.2 bullish comments for every 1 bearish comment on major social platforms such as X (formerly Twitter), Reddit, and Telegram. There is also growing expectation within the community that Solana, after lagging behind Bitcoin (BTC) and other major assets, could experience a breakthrough by reverting to the mean.

Rios, a market expert and DeFi researcher, pointed to a sharp drop in volatility and an increase in long-term holders as reasons for Solana's quietness. He analyzed that Solana's volatility has fallen to about 35.5%, which could be a sign that the market is being absorbed by stronger hands. He also stated that Solana spot ETF inflows have exceeded $1 billion, and the supply held by long-term holders has increased from 524,000 SOL to 2.58 million SOL.

Rios explained that these trends can reduce short-term confusion while also limiting the pace of a breakthrough until momentum returns. He viewed the current situation as closer to a quiet accumulation trend rather than a sign of vulnerability. He added that if volatility expands again, Solana's next move could be much larger than market expectations.

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