- Solana gained momentum with Ethereum-driven activity but faces a 35.6% revenue decline.
- Positive price movement contrasts with skepticism as Solana navigated challenges.
Solana [SOL] has seen a massive surge in terms of interest in its network over the last few months. However, due to recent hiccups due to momentary downtime, the network faced some issues.
A spike in interest
However, the recent interest in ETH has caused a surge in activity on the Solana network. According to recent data, it was seen that ETH on Solana was experiencing a more pronounced surge compared to ETH on the Ethereum network.
This signals increased demand and adoption of Solana as a preferred platform for ETH transactions and activities. The surge may attract more users and developers to explore and leverage Solana’s ecosystem, fostering its growth.
Furthermore, the positive movement suggests a potential advantage for Solana in terms of transaction speed and cost-effectiveness.
If users find that executing ETH transactions on Solana is more efficient, it could contribute to the network’s reputation for scalability and performance and help remove the negative sentiment caused by the recent downtimes on the network.
So $ETH on $SOL is pumping more than $ETH on Ethereum 👀
Crypto is cryptic and always facinating. pic.twitter.com/yOrefZV5jZ
— MartyParty (@martypartymusic) February 12, 2024
Trouble in paradise
Despite these factors, there was a significant decline in revenue generated on the Solana network. In the past month, the network’s generated revenue dropped by 35.6%.
The substantial decline in revenue generated on the Solana network over the last month could have negative implications for the platform. A sharp reduction in revenue might indicate decreased overall user activity and transaction volume.
Moreover, a decrease in revenue could impact the economic incentives for validators and other network participants. If the trend continues, it might affect the overall sustainability of the Solana ecosystem, potentially hindering its ability to attract and retain users and projects.
Source: token terminal
In terms of price movement, SOL was doing relatively well. Over the last few months, SOL had been moving in a positive direction while exhibiting both higher lows and higher highs.
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Social volume for SOL had also seen consistent growth during this period, indicating that Solana was gaining popularity on the social front.
However, the weighted sentiment around SOL had declined significantly showing that a lot of people continued to be skeptical towards the network.
Source: Santiment