Partnered With:

Solana's daily active addresses have exceeded one million again. What has played a key role in promoting it?

Read this article in 11 Minutes

The application driving the most new active addresses is Jupiter, which will undergo one of the most anticipated airdrops on January 31, 2024.

Original Title: "Introducing Solana Activity Monitor: What's Driving Solana User Activity?"

Original Author: JON MA, Artemis CEO

Original Translation: Deep Tide TechFlow

Introduction

Solana's daily active address count surpassed the 1 million mark on January 26, 2024, a number that was last seen in mid-December 2023. This has sparked discussions on the driving factors behind the growth in Solana user activity. This article will analyze the activity that occurred on Solana on January 26, 2024, and explore the applications and users that are driving this growth.

I'm sorry, but the content you provided cannot be translated as it consists of HTML tags and punctuation marks only. The

tag indicates a heading, while the
tag indicates a paragraph. The
tag represents a line break. These tags do not have a direct translation in English.
On January 26, 2024, the daily active address count of Solana exceeded one million.

According to Coingecko's data, the last time Solana recorded over 1 million daily active addresses was between December 15th and 17th, 2023, which coincides with the peak and decline of $BONK price.

This raises a question: what drove user activity on Solana on January 26, 2024? Which applications or users contributed to the growth of active addresses?

In this article, we attempt to answer the above questions. We have built an Activity Monitor to help analysts understand what drives on-chain activity. And if we discover an increase in network activity for networks such as Ethereum, Polygon, Solana, etc. (such as fees, daily transactions, or daily active addresses), can we use this tool to better understand which applications or users are driving the use of the chain?

In today's article, we use Activity Monitor to better understand what happened on January 26, 2024 on Solana. Overall, the increase in active addresses was driven by the $WEN airdrop. $WEN is a community token on Solana, distributed to wallets that exchanged over $5 on Jupiter, Ovols NFT holders, blue-chip NFT holders, or Genesis Saga holders.

What applications and users are driving Solana's user growth?

Using Activity Monitor, we can see that in the past 24 hours, there has been a significant increase in active addresses driven by DeFi and token transfers: DeFi users increased from 178,000 on Thursday, January 25th to 400,000 on Friday, January 26th. Similarly, active addresses for token transfers increased from approximately 55,000 on Thursday to 167,000 on Friday.

It is worth noting that on January 26, 2024, 37% of the daily active addresses on Solana are new. They may be new wallets and new users joining Solana, or they may be new wallets and addresses opened by bots to take advantage of the Jupiter or $WEN airdrops.

What is the most active application driving most of the new active addresses? By looking at the application table below, we found that it is Jupiter, a DEX aggregator on Solana, which will have one of the most anticipated airdrops on January 31, 2024.

We can see that over 520,000 active addresses have interacted with Jupiter's smart contracts, with the majority being old users (62%) and new users (38%).

It is worth noting that the average gas consumption per user on Jupiter (total gas fees paid on Jupiter / total number of active addresses on Jupiter) is approximately $0.3, while on Solana it is $0.49. In comparison to Ethereum, the average gas consumption per user is $13.55. Solana's lower gas fees make it easier to conduct more transactions on the chain.

Why are there more activities on Jupiter?

In short, this is the expectation for the $WEN airdrop and $JUP airdrop.

Background

· According to data from Stepn Finance, during the airdrop period, over 117,000 addresses were active at the same time yesterday.

· Due to the large number of activities surrounding the WEN airdrop, Phantom has experienced some performance issues;

· A large amount of trading (52.7 million in trading volume) occurred between SOL-USDC on Jupiter yesterday. Additionally, trading volume between WEN and SOL/USDC was approximately 48 million USD.

Our speculation regarding the transfer volume of the driving token (transfer unrelated to SOL, therefore considered as $WEN transfer between wallets/smart contracts) and the exchange on Jupiter:

· Investors who wish to buy or sell $WEN on Jupiter: Given the price increase of $WIF and $BONK, investors may want to prepare for another Meme's price increase.

· For those seeking to obtain the $WEN and Jupiter airdrops: However, it is worth noting that the actions taken on January 26, 2024 do not affect the eligibility for the two token airdrops.

· The eligibility requirements for $WEN's airdrop are to have exchanged at least $5 in the past 6 months, and any actions taken after January 19, 2024 will not affect the eligibility or amount of the airdrop, as it is evenly distributed to each eligible wallet. (Source: https://lfg.jup.ag/wen)

· $JUP's eligibility requirements for airdrops require action to be taken before November 2, 2023, so any action taken after this time will not affect eligibility for the airdrop.

Conclusion

Investors and protocols both have one question, which is which set of applications will ultimately drive the next wave of growth in the cryptocurrency user base.

Phantom shared in its 2023 review that within 3 months after Breakpoint, i.e. from September to December 2023, the installation volume exceeded 600,000 times, which coincides with the rise in Solana price, the end of FTX trial, and JTO's airdrop.

As we have seen in the growth of new active addresses in mid-December 2023 and January 26, 2024, it appears that memes such as $WIF, $BONK, and $WEN, as well as expectations for airdrops, are clearly playing a significant role in attracting new users.