Solana’s Silent Crisis: Why Addresses Diminish While Price Holds

Something unusual is happening in the Solana ecosystem. While SOL’s price has climbed from $161 to $197, its active user base has dropped by more than 50%. Just a few months ago, in October 2024, Solana’s network saw 18.5 million active addresses, a sign of robust engagement. But fast forward to February 2025, and that number has plunged to 8.4 million.

This raises an important question: Why is Solana’s price rising while user participation is falling?

The Disconnect Between Price and Network Activity


At first glance, a price increase would suggest growing interest and adoption. But here’s the twist: SOL’s value appears to be driven by fewer, but more committed investors, rather than broad-based usage growth.

🔹 Declining Engagement – Fewer transactions, less activity, and a shrinking user base.
🔹 Rising Prices – A sign that major investors and institutions, rather than retail traders, could be accumulating SOL.

The Technical Picture: A Market at a Crossroads


Beyond network activity, technical indicators reveal a market in limbo.

📊 RSI at 32.16 – Just above the oversold threshold (30), meaning buyers could step in soon.
📊 Money Flow Index (MFI) at 39.98 – Money isn’t aggressively leaving SOL, but it isn’t pouring in either.
📊 Open Interest Down 2.23% – Fewer traders are taking new positions, suggesting hesitation.

Key Price Levels to Watch


Solana’s next moves will depend on how it interacts with these crucial levels:

📌 Resistance: $180 and $200 – A sustained move above $180, especially if RSI crosses 40, could signal a recovery.
📌 Support: $170 and $160 – If selling pressure intensifies, SOL could retest these lower zones.

Where Does Solana Go From Here?


Is Solana becoming a blockchain for whales and institutions rather than everyday users? Or is this just a temporary lull before a fresh wave of adoption?

For now, SOL’s price remains resilient, but without renewed on-chain activity, the rally may not last. If open interest and network participation rebound, Solana could be setting up for its next major move.