Solana (SOL) price could be set for a rally as the altcoin’s on-chain activity has increased significantly in the last thirty days. The Ethereum-competitor chain has observed a steep decline in transaction fees and a rise in daily active addresses, likely driving higher demand for SOL and Solana-based assets among crypto market participants.
Data from Dune Analytics, a crypto intelligence platform, shows that Solana has noted an increase in the daily active addresses. The metric tracks the activity of wallet addresses active on the SOL chain. A rise in active addresses is typically associated with an increase in demand for the altcoin or higher utility among traders.
SOL daily active addresses have climbed threefold in the last 30 days to 3.11 million, highest level in nearly one year.
Daily active addresses in Solana
Meanwhile, the number of new addresses has also increased significantly. The indicator tracks new wallet addresses created, in this case on the SOL chain, a factor that is associated with rising demand for the altcoin. An increase is often considered a sign of higher adoption.
Within the first ten days of September, the number of new addresses created stood at 22.88 million, according to Hellomoon data, representing 57% of August’s overall number of new addresses. This shows a fast-paced adoption of SOL among new traders.
Number of new addresses on Solana
Traders adopt a chain based on the fees charged when making transfers across the network. Solana’s average transaction fee stands at $0.00520, according to Dune Analytics data, a 68% decline since August 9.
Solana Average Transaction Fee
At the time of writing, Solana trades at $133.83, down less than 1% on the day.