Analyzing Solana’s 7x Revenue Growth and Q2 Decline
Journalist
- SOL’s market cap increased by over 130% in Q1.
- Sentiment around the token turned bearish last week.
As for most cryptocurrencies, Q1 2024 also ended positively for Solana [SOL]as it performed well on several fronts. Therefore, here’s a closer look at SOL’s Q1 performance and what to expect in Q2. Solana Stats for Q1
Coin98 Analytics, a data analytics platform, recently posted a
tweet highlighting Solana’s network stats in Q1. According to the tweet, SOL showed remarkable performance in terms of value captured. SOL’s fees and revenue increased 7x compared to the previous quarter and 27x compared to the same period last year.
However, it was surprising to see that despite the massive increase in revenue, the blockchain’s total revenues fell by 131% last quarter. The reason for this was a 141% increase in Solana spending in Q1.
Nevertheless, the blockchain’s network activity remained robust. This was the case as the number of daily active addresses increased by 214%, surpassing 591,000.
AskFX then checked the data from Artemis
to find out how things looked in Q2. We found that both feeds and revenues have declined in the last week. A similar downward trend was also observed in daily active addresses. Nevertheless, SOL’s daily transactions increased last week, reflecting an increase in usage. 
Source: Artemis
Solana investors took profits
Coin98’s tweet also mentioned that SOL’s price rose in Q1 due to the optimistic market situation. According to the report, SOL’s circulating market cap exceeded $53 billion as it gained over 130% in Q1.
However, the growth momentum slowed down in Q2 as bears stepped in.
According to
CoinMarketCap
SOL’s price has fallen by more than 5% in the past seven days. At the time of writing, SOL was trading at $173.25, with a market cap of over $77 billion. To see how the token’s price drop has affected market sentiment, AskFX took a look at data from Santiment. Our analysis found that Solana’s social volume remained high last week, reflecting its popularity in the crypto space. However, investor confidence in SOL waned due to the price movement.The token’s weighted sentiment remained in the negative territory, meaning that bearish sentiment around SOL dominated the market.
Source: Santiment
Whether realistic or not, here is
the market cap of SOL in BTC terms
Things were also looking quite pessimistic for SOL in the derivatives market. Open interest was increasing while the price was falling, suggesting that the price decline could continue further. In addition, the funding rate was also high. This suggested that futures investors were buying SOL activity at its low price.
Source: Santiment
