86 Million Empty Solana Wallets: New Data Reveals Issues with User Activity
Date: 2024-10-10 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Data from October 9th shows that despite Solana’s active addresses surpassing 100 million, over 86 million wallets on the network contain no funds. This information was provided by analytics platform Artemis Terminal, which raises concerns about the reliability of user engagement metrics.
A deep dive into Solana wallet user activity shows that over 86 million wallets have not held any SOL in the past month, according to analytics tool Hello Moon. Around 15.1 million wallets contain less than 1 SOL, while around 1.5 million have less than 10 SOL. These numbers call into question whether these active wallets truly reflect user interest.
Despite the large number of empty wallets, Solana is still showing growth in other key metrics. For example, after a slowdown in September, there has been a significant increase in new SPL tokens and accounts on the network. Since September 26, at least 17,000 new tokens have been created daily, indicating a recovery in activity.
SPL is the token standard for Solana, similar to ERC-20 on Ethereum. On October 8, more than 10 million new accounts were registered on the platform, more than double the number created the day before. However, critics point out that bots, rather than real users, may be behind the increase in wallets.
Analyzing Solana’s activity and competition from other Layer-1 networks, Dune Analytics reported in late September that average transaction fees on Solana had increased to $0.02, which is still significantly lower than Ethereum’s median gas fee of $3. As of October 9, Solana ranks third among blockchains by total value locked (TVL) in DeFi, at $5.41 billion, while Ethereum has $44.7 billion.
Despite its status as a major Layer-1 network, Solana faces increasing competition from other scaling solutions such as the Sui Network. Analysts at K33 Research suggest that Sui’s architecture and the upcoming release of a gaming console could pose serious competition to Solana in terms of performance and user engagement.
So while Solana’s wallet count continues to increase, the network faces the challenge of translating those numbers into real user activity.
