Solana Surpasses Bitcoin in Daily Active Users; Jupiter DEX Leads
Solana Surpasses Bitcoin Thanks to DEXes
Solana, a Proof-of-Stake network, has surpassed Bitcoin in terms of daily active users. This is a significant milestone, largely due to the increasing activity on its decentralized exchanges (DEXes).
Rising User Numbers on Solana
On January 26, Solana recorded over a million active users, the first time in over a month. In comparison, the number of daily active addresses of Bitcoin dropped to 597,000. Solana also maintains an undisputed leadership position in terms of on-chain transactions. On the same day, the daily number was 26.39 million, far surpassing other networks. For comparison, Tron, which is in second place, recorded about 4.59 million transactions.
DEXes Driving Demand
The strong increase in Solana’s network activity is likely due to the rising demand for its decentralized exchanges (DEXes). According to CoinGecko, Jupiter, a Solana-based DEX, has surpassed market leader Uniswap in terms of 24-hour trading volume, with transactions worth $389 million. Indeed, Solana has recorded significant DEX volumes in the past three months, especially after the lows of the 2022-23 bear market.
Positive Developments for SOL
The positive developments in the network are also reflected in the price of the native token SOL. The fifth largest cryptocurrency rose by 4.48% in the last 24 hours, representing a weekly gain of 4.23%. However, the performance of SOL in 2024 so far has not been comparable to the last quarter of 2023, when the price jumped fivefold.
The market sentiment for SOL has shifted from greed to neutrality. The short to medium term outlook for SOL depends on the demand from market buyers, which is why more traders need to be willing to acquire the asset at this time.
Sources: CoinGecko, CoinMarketCap, DeFiLlama, Artemis, Hyblock Capital