Solana network activity has expanded rapidly since early September, with network growth jumping 124% to average approximately 1.71 million new wallets created daily. According to analytics platform Santiment, daily active addresses on the blockchain rose 58% over the same timeframe to reach 4.27 million unique wallets. The firm noted that "networks that attract more users and real utility have historically had greater potential to support higher market caps over time."
Network Activity and SOL Technical Targets
Despite the surge in wallet creation, SOL is trading near $115 following a 3% decline over the past 24 hours. The token broke its four-hour channel support after facing rejection near $120 earlier in the week. Technical analyst Ali Martinez warned that if SOL fails to defend support at $114, the price could drop to $111.
Despite short-term weakness, long-term market forecasts remain constructive. Crypto trader 'Wick' argued that price corrections represent buying opportunities, while analyst Tracer projected a move above $300 during the market cycle. Martinez also highlighted a potential cup-and-handle pattern on SOL's monthly chart with a neckline near $295, indicating that a monthly close above that level points to a technical target near $2,744. Network scalability continues to evolve alongside user growth, following updates such as when Solana doubled block production speed.
Institutional ETF Outflows vs. Stablecoin Supply
While retail address creation has surged, institutional participation via US-listed spot SOL ETFs slowed in October. After attracting more than $271 million in net inflows during September—its second-best month on record—the funds have logged just one day of inflows in October, taking in $1.30 million on October 2. Total month-to-date net outflows have exceeded $22 million.
In contrast, onchain stablecoin activity has climbed to historical highs. Data compiled by Blockworks reveals that more than 14 million addresses now hold stablecoins on Solana, up from under 4 million in late 2024. The network's total stablecoin supply now stands above $15 billion. Selective altcoin strength and ecosystem usage mirror momentum across other layer-1 networks, such as when NEAR Protocol rocketed 10% in an altcoin rebound.
Key Takeaways
- Wallet Creation: Daily new wallets averaged 1.71 million, driving a 124% jump in network growth since September.
- Active Addresses: Unique daily active wallets increased 58% to hit 4.27 million.
- Price Levels: SOL traded near $115, risking a slide to $111 if $114 support breaks.
- Institutional Flows: US spot SOL ETFs posted over $22 million in October outflows following $271 million in September inflows.
- Stablecoin Adoption: Solana stablecoin supply surpassed $15 billion across 14 million holding addresses.
Why It Matters
The divergence between record-high onchain active addresses and cooling spot ETF flows highlights a shifting dynamic between retail utility and institutional capital. While short-term price action remains constrained below $120 resistance, a stablecoin supply exceeding $15 billion provides deep liquidity to cushion market drawdowns. If Solana sustains 4.27 million daily active users, long-term network valuation could eventually realign with underlying operational adoption.
