- Solana network usage and active addresses have surged sharply.
- Spot and futures data show sustained buyer dominance.
- Cooling volume suggests consolidation, not guaranteed upside.
Solana (SOL) is sending mixed but compelling signals to the market. On one hand, on-chain data shows a sharp rise in network usage and buyer activity. On the other, spot trading volume has cooled for weeks, raising questions about whether the current phase marks healthy consolidation or something more cautious.
Recent metrics point to a clear surge in demand. Active addresses on the Solana network jumped more than 50% in just one week, while weekly transactions climbed above 500 million. That spike in activity arrived alongside a technical breakout, suggesting growing confidence among traders and users alike.
Network Usage and Derivatives Signal Optimism
The rise in active addresses and transactions highlights renewed engagement with Solana’s ecosystem, from DeFi to trading activity. At the same time, derivatives data shows traders positioning for further upside. Both spot and futures cumulative volume delta (CVD) have leaned heavily toward buyers over the past three months, indicating sustained buying pressure rather than short-lived speculation.
These signals often point to strength beneath the surface. Even as Bitcoin briefly slipped below a key local support level, Solana buyers stepped in around the $130–$133 zone, defending it as a short-term demand area.
Cooling Spot Volume Raises a Caution Flag
Despite the bullish on-chain picture, spot trading volume tells a more cautious story. Since late November, Solana’s spot volume has steadily declined, entering what analysts describe as a “cooling” phase. In strong uptrends, cooling volume can precede consolidation or even local bottoms, allowing the market to reset.
However, the length of this cooling period matters. The current pattern looks closer to post-2022 conditions than to the more active 2024–2025 cycle. Back then, falling volume followed the end of a major rally and preceded extended weakness. That comparison suggests traders should avoid assuming an immediate breakout.
Accumulation Continues, but Patience Is Key
Longer-term data offers bulls some reassurance. Holder net position change has remained positive since late December, showing that investors are steadily accumulating SOL. Exchange balance data supports this trend, with more tokens leaving exchanges than entering — often a sign of long-term holding rather than short-term selling.
Still, accumulation does not guarantee rapid price appreciation. Instead, it suggests confidence in Solana’s longer-term outlook while short-term momentum remains uncertain.
Also Read: Chainlink Surges on Solana: 3 Signs It’s About to Rally!
Solana’s fundamentals look strong, with rising network usage and clear signs of accumulation. Yet cooling spot volume and broader market uncertainty mean patience is warranted. For long-term investors, this environment may favor disciplined strategies like dollar-cost averaging rather than chasing short-term moves.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
