Solana (SOL) has recently seen a significant increase in network activity, with a notable rise in the number of active wallet addresses. This surge in user engagement contrasts with the altcoin’s price performance, which has been in a downward trend since January 2025. Despite this, Solana’s increasing adoption and consistent activity could signal future potential for the blockchain, as its price may eventually catch up with the expanding network activity.

Surge in User Adoption

One of the key indicators of Solana’s growing ecosystem is the rise in the number of addresses holding at least 0.1 SOL. According to data from Glassnode, this metric reached over 11 million by March 21, 2025. This marks a significant increase from around 9.2 million addresses in late December 2024. The continuous rise in the number of active wallet addresses is a clear sign that more users are joining the Solana ecosystem, and smaller retail participants appear to be accumulating SOL in anticipation of future growth.

The uptick in active users reflects Solana’s sustained popularity as a blockchain platform, especially when considering that its price has struggled over the past few months. Since its peak in January, when SOL briefly touched $180, the altcoin’s price has fallen to approximately $129.54 at press time. This price correction contrasts with the growing number of wallet addresses, signaling that network expansion is continuing despite short-term price weakness.

TVL Decline: A Key Challenge

Despite impressive growth in user adoption, Solana’s Total Value Locked (TVL) has faced a sharp decline. According to data from DeFiLlama, Solana’s TVL peaked at over $11 billion in January 2025 but has since dropped to around $6.2 billion. This pullback in TVL suggests a contraction in DeFi capital allocation, which could be attributed to broader market volatility and reduced incentive programs within the Solana ecosystem.

Although the TVL decline may indicate some contraction within Solana’s decentralized finance (DeFi) sector, it is important to note that the current TVL remains much higher than the pre-bull market levels seen in 2023. This suggests that Solana’s DeFi ecosystem continues to retain a meaningful level of traction, even amid macroeconomic uncertainty and changing market dynamics.

Solana’s Price Outlook

At the time of writing, Solana’s price is trading below both its 50-day and 200-day moving averages, which hints at a broader bearish trend. The 50-day moving average stands at $135.50, and the 200-day moving average is $188.05. These levels have acted as significant resistance points, suggesting that the price of SOL may remain range-bound in the short term. Additionally, the low trading volume indicates limited buying pressure at the current levels.

However, the Accumulation/Distribution Line, a technical indicator that tracks the distribution and accumulation of an asset, is showing consistent upward movement. This suggests that there may be a steady accumulation of Solana by smart money, which could support the price and provide a potential foundation for future rallies.

Will Price Catch Up with Network Strength?

Despite the price struggling to keep pace with the increase in user adoption and network growth, Solana’s long-term prospects remain solid. The growing number of active addresses and the steady demand for SOL are positive signs of Solana’s strength as a blockchain platform. While the price remains below its key resistance levels, the strong on-chain activity may provide the necessary momentum for Solana to break through these resistance zones.

In conclusion, while Solana’s price has faced challenges recently, the surge in network activity, particularly the increase in active wallet addresses, indicates a growing user base. If this trend continues, and if DeFi activity stabilizes, Solana could experience a price recovery. A sustained rally may occur once the price aligns more closely with the network’s underlying strength, making Solana an asset to watch closely in the coming months.