Solana daily active users surge: How will it affect SOL’s performance in 2023?

• Solana witnessed an increase in daily active users, driven by DeFi and NFT growth.
• Long-term growth potential is suggested by rising TVL, growing NFT market, and increasing trading volume.

The Solana [SOL] network witnessed a significant increase in daily active users in recent weeks, according to data from Token Terminal. Despite the negative sentiment surrounding Solana over the past few months, the platform outperformed many other cryptocurrencies in terms of user engagement.

Source: token terminal

Read Solana’s [SOL] Price Prediction 2023-2024

One reason for this growth in daily active users is the growing interest in Solana’s DeFi and NFT spaces. In particular, Solana’s DeFi daily active users witnessed a spike over the last month, which contributed to growth in terms of Solana’s total value locked (TVL).

According to DeFiLlama, the TVL for Solana increased from $206 million to $242.77 million in just one month.

Source: Dune Analytics

Solana NFTs make a comeback

The interest in Solana NFTs has also been on the rise. According to Solana Floor’s Data, the network’s NFTs are being bought, sold, and traded at an increasing rate. The total floor value of Solana NFTs increased materially over the past month, as evidenced by the charts below. The volume of Solana NFTs being traded also increased during the same duration.

Source: Defi Llama

Additionally, dApp activity on the network grew rapidly, which also contributed to the spike in daily active users. Popular dApps such as Magic Eden, Raydium and Saber, all witnessed an uptick in the number of unique active wallets on their respective platforms.

Are your SOL holdings flashing green? Check the SOL profit calculator

Magic Eden, one of the largest dApps on the Solana network, observed growth in terms of volume and transactions. According to Dapp Radar, the volume on Magic Eden increased by 21.12%, and the number of transactions spiked by 73.15% over the past month.

Source: Dapp Radar

Turning up the volume

The positive indicators are reflected in Solana’s on-chain activity, which saw a significant spike in recent weeks, according to data from Santiment. The network’s volume has grown from $206 million to $1.45 billion in just one month, which indicates increased market activity and liquidity.

Source: Santiment

While the price of SOL was $16.20 at press time and fell by 1.31% in the last 24 hours, the long-term growth prospects of the Solana network looked promising due to the increasing number of daily active users, growing interest in DeFi and NFTs, and rising dApp activity.