SAN FRANCISCO, California – The Solana network has experienced a surge in the number of addresses with a balance of at least 0.1 SOL, reaching over 11.1 million, the highest level in months. Despite this increase in network activity, Solana’s Total Value Locked (TVL) has dropped significantly from $11.7 billion to $6.2 billion since January.
The growing number of addresses holding 0.1 SOL or more is a reflection of the increasing user adoption of Solana. This trend has been steadily rising since late December 2024, even as the price of SOL has corrected from previous highs. The question arises as to whether the market is undervaluing Solana’s fundamentals considering the decoupling of network growth from price action.
Data from Glassnode shows that the number of addresses with at least 0.1 SOL has risen from around 9.2 million in late December to over 11 million by 21 March. This surge in the user base indicates continued interest in the Solana ecosystem, despite the price of SOL dropping from above $180 in January to around $129.54 currently.
On the other hand, the TVL on Solana has seen a significant decrease according to DeFiLlama’s data, dropping from over $11 billion in January to just under $6.4 billion recently. This decline suggests a contraction in DeFi capital allocation, potentially influenced by macro volatility and reduced incentive programs. However, the current TVL level is still significantly higher than pre-bull market levels in 2023, indicating ongoing traction in Solana’s DeFi ecosystem.
Although SOL is currently trading below both the 50-day and 200-day moving averages, suggesting a bearish structure, the Accumulation/Distribution Line shows consistent upward movement, indicating possible accumulation by smart money at current levels. While the price may remain rangebound in the short term due to low volume and resistance around $135, sustained on-chain growth could pave the way for future rallies.
Despite speculative capital withdrawing, Solana continues to exhibit strong foundational demand. If the price aligns with the network’s strength, there is potential for SOL to embark on another rally in the near future.