Solana (SOL) has become one of the best-performing cryptocurrencies in 2023, rising 920% in a year. This was partly due to increased network activity, which brought more value to the ecosystem and increased demand for the native token.
Specifically, the number of active addresses on the Solana network increased by approximately 600,000 over the month. The number of daily active addresses increased from 382,700 on November 21st to a yearly high of 981,380 on December 21st.
According to The Block's chart, current address activity remains above the 1-year average of 625,160.
Number of active addresses in the Solana network. Source: The Block
The number of active addresses is just one indicator indicating increased activity on the Solana network. Additionally, 2023 saw dramatic growth in the DeFi ecosystem, allowing Solana to become one of the top five networks with the highest Total Value Locked (TVL).
Despite having one of the most inflationary tokenomics of any cryptocurrency, increased network activity has led to the growth of the Solana token. In 2023, SOL started trading at $9.95 and ended at $101.71, an increase of 921%.
Daily SOL price chart for 2023. Source: TradingView
However, past achievements do not mean continued demand for Solana in the future. In fact, it should overcome SOL's recurring daily unlocks of over $8 million. Additionally, Solana's 18% annual inflation could create significant selling pressure.
Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
