Solana user numbers fall to two-year lows

Solana’s blockchain activity continues to fall — as of August 31, the number of daily active users in the network dropped to 204,000.

That is the lowest reading since analysts began tracking on-chain data for the protocol in late 2020.

The decline in active Solana users intensified after the collapse of the cryptocurrency exchange FTX. Activity continued to slip after the SEC named the native SOL token a security.

“There had already been a decline in the number of active users in the Solana ecosystem even before the FTX collapse, but the fact that the blockchain had such strong ties with the exchange and Alameda Research somewhat damaged its reputation,” said Rebecca Stevens, blockchain analyst at The Block.

According to CoinGecko, SOL is trading at $19.77 at the time of writing, down 7.9% for the week.

According to DeFi Llama, Solana ranks tenth by total value locked, amounting to $314.28 million.

In August, the Elusiv team added to the eponymous Solana app a confidential token-swap feature. The solution enables swapping assets without revealing information about the address of a public wallet on the blockchain.

Earlier, Solana co-founder Anatoly Yakovenko allowed the use of Ethereum as a second-layer solution.