Solana Crypto Transactions Surge to $67mn, Could This Mark Demand Resurgence?

This week has been a mixed bag for the crypto market and especially Solana crypto and its native coin. The week. SOL in particular kicked off the week with bullish hopes but those were crushed by the resurgence of sell pressure.

The Solana network transactions have been on the rise recently and have even surged higher than what we observed in November. To illustrate the point, daily transactions on the Solana network were just shy of 60 million TXs last month. Daily transactions surged close to 70 million TXs earlier this week.

Although the recent daily transaction count on Solana was an interesting observation, it was not the highest in the network’s history. Its highest recorded transaction count was 376 million TXs on 30 August 2023 according to DeFiLlama.

SOL Briefly Dips Below $200 but is a Bullish Recovery on the Way?

Solana’s native coin SOL has been struggling to recover the bullish momentum observed in November. In fact, it dipped below $200 for the first time since 10 November.

The dip reflects the sell pressure that has prevailed since its top in November. Although it dipped below $200, it bounced back to a $205.27 press time price tag. However, the big question now is whether it can bounce back or sustain the sell side momentum.

While a bullish recovery is plausible, the latest downside could potentially extend if holiday selloff intensifies. Such an outcome could see price dip as low as $175 which is a key Fibonacci level based on the bottom and top of the latest rally.

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Ultimately, the outcome will depend on whether market conditions will improve. So far the cryptocurrency maintained negative spot flows in the last 4 days. Its performance was a reflection of the bearish market conditions. But could SOL decouple from the rest of the market an adopt a bullish performance?

Solana Crypto’s Robust User Growth Contributed to SOL Performance

Solana was the most dominant blockchain network in November. According to TokenTerminal, 53% of all crypto crypto users in the world used Solana in November 2024. This means it was the network that captured the largest share of blockchain utility.

This was a noteworthy development because it underscores an impressive level of market penetration. It also indicates that Solana user growth was through the roof in November, building on the growth it achieved earlier in the year.

Daily active addresses on Solana peaked at 6.63 million addresses on 22 November. That figure has since dropped to 4.91 million active addresses as of 18 December.

The dip in daily active addresses reflects the cooling down that has taken place in December. The next major phase of excitement in the market may trigger more address activity and thus more potential organic demand for SOL.

Can Solana maintain this pace in 2025? Based on historic performance especially in 2024, Solana was able to tap into market hype by focusing on key narratives.

Solana’s ability to achieve similar or higher levels of success in 2025, may depend on its ability to stay on top of major narratives. Keep in mind that spikes in Solana transactions could signal the return of market excitement.