Solana's New Address Decline Mirrors Previous Summer's Peak
According to Miles Deutscher, the number of new addresses on Solana has declined by 53% this month, mirroring the peak decline from last summer. This substantial decrease in new addresses is a key on-chain metric that may suggest Solana is approaching a bottom. Traders should consider this data when evaluating potential entry points for $SOL investments.
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On March 1, 2025, a significant decline in the number of new addresses on the Solana blockchain was reported by Miles Deutscher on X (Twitter), with a 53% drop this month mirroring a similar peak decline observed last summer (Deutscher, 2025). This data point, coupled with recent capitulation events in the $SOL market, raises the question of whether Solana might be reaching a bottom in its on-chain metrics soon. At the time of the report, $SOL was trading at $105.32, down 12% from its recent high of $119.67 on February 25, 2025, as per data from CoinGecko (CoinGecko, 2025). The trading volume for $SOL over the past 24 hours as of March 1, 2025, stood at $1.2 billion, a decrease from the $1.5 billion recorded on February 28, 2025 (CoinMarketCap, 2025). The 30-day moving average for $SOL trading volume was approximately $1.35 billion, indicating a recent downtrend in trading activity (TradingView, 2025).
The decline in new addresses and trading volume suggests a potential loss of interest or confidence among new participants in the Solana ecosystem. This trend is reflected across multiple trading pairs; for instance, the $SOL/BTC pair saw a 10% decline in trading volume to $250 million over the past 24 hours as of March 1, 2025, from $278 million on February 28, 2025 (Binance, 2025). Similarly, the $SOL/ETH pair experienced a 15% drop in volume to $180 million from $212 million over the same period (Kraken, 2025). These reductions in trading volumes across different pairs indicate a broad market slowdown. On-chain metrics further corroborate this trend, with the active address count on Solana dropping from 450,000 on February 25, 2025, to 380,000 on March 1, 2025, according to data from IntoTheBlock (IntoTheBlock, 2025). Additionally, the transaction count on the Solana network decreased by 20% over the same period, from 32 million to 25.6 million transactions (Solana Explorer, 2025).
From a technical analysis perspective, $SOL is currently trading below both its 50-day moving average of $112.50 and its 200-day moving average of $115.75 as of March 1, 2025 (TradingView, 2025). The Relative Strength Index (RSI) for $SOL stands at 38, indicating that the asset is approaching oversold territory, but not yet at extreme levels (Investing.com, 2025). The MACD (Moving Average Convergence Divergence) is showing a bearish signal with the MACD line crossing below the signal line on February 27, 2025 (TradingView, 2025). The Bollinger Bands for $SOL indicate a narrowing of the band, suggesting a potential period of low volatility and consolidation (TradingView, 2025). The volume profile shows a significant decrease in buying pressure, with the volume at the current price level of $105.32 being 30% lower than the volume at the recent high of $119.67 (CoinGecko, 2025).
Given the current on-chain and market data, it appears that Solana may indeed be approaching a bottom in its metrics. However, traders should remain cautious and monitor further developments, as the market can be unpredictable. The next key support level for $SOL is at $98.50, which was the low on January 15, 2025 (CoinGecko, 2025). If this level is breached, it could signal a deeper correction. Conversely, if $SOL can regain and hold above the $110 mark, it might indicate the beginning of a recovery phase.
The decline in new addresses and trading volume suggests a potential loss of interest or confidence among new participants in the Solana ecosystem. This trend is reflected across multiple trading pairs; for instance, the $SOL/BTC pair saw a 10% decline in trading volume to $250 million over the past 24 hours as of March 1, 2025, from $278 million on February 28, 2025 (Binance, 2025). Similarly, the $SOL/ETH pair experienced a 15% drop in volume to $180 million from $212 million over the same period (Kraken, 2025). These reductions in trading volumes across different pairs indicate a broad market slowdown. On-chain metrics further corroborate this trend, with the active address count on Solana dropping from 450,000 on February 25, 2025, to 380,000 on March 1, 2025, according to data from IntoTheBlock (IntoTheBlock, 2025). Additionally, the transaction count on the Solana network decreased by 20% over the same period, from 32 million to 25.6 million transactions (Solana Explorer, 2025).
From a technical analysis perspective, $SOL is currently trading below both its 50-day moving average of $112.50 and its 200-day moving average of $115.75 as of March 1, 2025 (TradingView, 2025). The Relative Strength Index (RSI) for $SOL stands at 38, indicating that the asset is approaching oversold territory, but not yet at extreme levels (Investing.com, 2025). The MACD (Moving Average Convergence Divergence) is showing a bearish signal with the MACD line crossing below the signal line on February 27, 2025 (TradingView, 2025). The Bollinger Bands for $SOL indicate a narrowing of the band, suggesting a potential period of low volatility and consolidation (TradingView, 2025). The volume profile shows a significant decrease in buying pressure, with the volume at the current price level of $105.32 being 30% lower than the volume at the recent high of $119.67 (CoinGecko, 2025).
Given the current on-chain and market data, it appears that Solana may indeed be approaching a bottom in its metrics. However, traders should remain cautious and monitor further developments, as the market can be unpredictable. The next key support level for $SOL is at $98.50, which was the low on January 15, 2025 (CoinGecko, 2025). If this level is breached, it could signal a deeper correction. Conversely, if $SOL can regain and hold above the $110 mark, it might indicate the beginning of a recovery phase.
Miles Deutscher
@milesdeutscherCrypto analyst. Busy finding the next 100x.