Ethereum, Bitcoin users rush to Solana [SOL] as they seek…

• Excessive transaction charges on Ethereum and Bitcoin have led to elevated community exercise on Solana.
• Whereas community exercise sees progress, different ecosystem metrics expertise a decline. 

Solana noticed an inflow of recent customers as excessive transaction charges on Ethereum [ETH] and Bitcoin[BTC] drove new demand to the Layer 1 (L1) community, knowledge from The Block confirmed. 

Learn Solana’s [SOL] Worth Prediction 2023-24

On the Ethereum community, the meme coin craze led by the unprecedented rally within the worth, buying and selling quantity, and market capitalization of frog-themed Pepe (PEPE) located a spike in transaction charges on the chain.

Based on knowledge from Messari, common transaction charges rallied to a excessive of $27.61 on 9 Could, its highest degree since Could 2022.

As for the Bitcoin community, the introduction of Ordinals and BRC-20 tokens led to a big improve in community exercise and charges on the chain.

Information from Messari additional confirmed that the common transaction charges on the chain went as excessive as $30 on 8 Could, its highest since April 2021. 

SOL emerges because the winner

Intending to search out blockchain networks that supply decrease transaction charges, customers have been shifting away from Ethereum and Bitcoin.

Solana emerged as a high contender on this quest, garnering elevated consideration and resulting in an increase within the variety of lively addresses on its community. Information from The Block revealed a 113% increment within the rely of every day lively addresses on the chain. 

Assessed on a month-over-month (MoM) foundation, Solana recorded a complete of seven.72 million lively addresses in April. Curiously, with about two weeks left to go in Could, the chain has already seen 7 million lively addresses. 

Moreover, knowledge from The Block confirmed that new handle rely on the chain has grown considerably for the reason that finish of April.

New customers flock in

In Could, Solana witnessed the creation of 4.19 million new addresses, surpassing the rely of three.76 million new addresses that joined the community in April. 

Supply: The Block

This surge in new handle creation on the L1 community highlights the rising adoption of the platform amid excessive transaction charges on the Ethereum and Bitcoin networks. 

Nonetheless, whereas Solana’s community exercise has skilled progress for the reason that finish of April, knowledge from Artemis revealed a decline in different ecosystem metrics.

For instance, in response to the on-chain knowledge, the community’s complete worth locked (TVL) was on a downtrend since 19 April. At $269.78 million at press time, it has since fallen by 8%.

Supply: Artemis

Lifelike or not, right here’s SOL’s market cap in BTC phrases

Likewise, the decentralized exchanges (DEXes) housed inside the L1 community suffered a drop in transaction quantity for the reason that month began. Per knowledge from Artemis, DEX quantity on Solana has plummeted by 66% for the reason that starting of Could. 

Supply: Artemis

Concerning the chain’s native coin SOL, buying and selling at $20.73 at press time, its worth declined by double digits (17%) within the final month.