In a significant turn of events, Solana has surpassed Ethereum in terms of daily active users, reflecting its impressive growth within the cryptocurrency landscape.
As reported by Artemix, Solana's user count surged to 356,300 on November 11, surpassing Ethereum's 330,000 users on the same day, which seems impressive.
Meanwhile, this achievement is attributed to the recent surge in activity on Solana, with daily active addresses reaching 208,000 on November 7.
Thus, let's explore the factors behind this remarkable milestone and consider Solana's growth.
Solana's Recovery and Growth
Solana's resurgence showcases its resilience following a challenging period that included the cryptocurrency's price plummeting by over 96% from its all-time high of $250 in November 2021 to under $10 in January 2022, according to CoinGecko.
Additionally, active addresses on the Solana network witnessed a decline of 85%, dropping from 1.28 million in May 2022 to approximately 200,000 in September, as reported by The Block.
However, Solana refused to remain downtrodden and emerged stronger amidst the recent cryptocurrency rally.
Moreover, its price has surged by an impressive 145% over the past four weeks, outperforming several rival digital assets.
Meanwhile, the total value locked in Solana-based DeFi protocols has also experienced a significant boost of 62% during the same period, according to DeFi Llama.
Furthermore, as reported by Crypto Slam, NFT sales volume on Solana has grown by a remarkable 35% in the past 30 days.
Positive developments, including progress towards Solana's firedancer upgrade as a testnet and the fading expectation of extensive SOL sales by FTX's bankruptcy estate, have contributed to Solana's upward trajectory.
What's Up with Ethereuem's Layer 2 Now?
While the recent surge in Solana's activity has led some analysts to conclude that it has overtaken Ethereum in terms of active users, it is essential to consider Ethereum's ecosystem's expansion beyond its base layer.
Nowadays, the majority of activity occurs on Layer 2 networks within the Ethereum ecosystem.
According to token terminal data, over 800,000 users were active across the top seven Layer 2 networks in the past day, combining with the Ethereum mainnet to suggest that there were over 1 million active wallets across the Ethereum ecosystem, which sounds amazing.
However, it is worth noting that this data does not account for users operating the same wallet across multiple networks.
Furthermore, L2beat reports that Layer 2 networks drive 80% of the Ethereum ecosystem's activity, which translates to around 60 transactions per second.
Solana's impressive growth in daily active users represents a significant milestone for the cryptocurrency, reflecting its recovery after a challenging period.
Despite the considerable advancements made by Solana, it is important to acknowledge Ethereum's expanded ecosystem, particularly with the prominence of Layer 2 networks driving a substantial portion of the activity.
Moreover, both blockchain networks offer unique strengths and continue to shape the evolving landscape of decentralized finance.
As Solana continues to attract more users and Ethereum explores further scalability solutions, the competition between the two ecosystems remains captivating for cryptocurrency enthusiasts worldwide.