Solana sees 1.3 million users leave - Here's the why and what can stop it?

Stripe launches crypto payments through Solana USDC.
Interest in Solana’s DeFi verticals continued to decline.

Solana [SOL] managed to see massive growth over the past few months. Stripe’s recent move may add further momentum to Solana’s growth.

Can Solana rise to the top?

Stripe, a prominent financial service provider, has ambitious initiatives slated for the upcoming summer, which involve facilitating cryptocurrency payments using the USDC stablecoin on the Solana blockchain.

Co-founder John Collison emphasized that the platform is expanding its support to encompass global stablecoin payments. Furthermore, he stated that cryptocurrency transactions will now undergo “immediate” settlement into fiat currency.

Initially, the utilization of Circle-issued USDC will kickstart the crypto payment integration across Solana, Ethereum, and Polygon blockchains.

Collison highlighted during his keynote address that Stripe is aiming to enhance user experience significantly with the reintroduction of crypto settlements.

This can have a positive impact on the Solana ecosystem. Stripe’s vast user base will be exposed to SOL, potentially leading to a surge in adoption and usage of the blockchain for transactions.

At press time, the number of daily active addresses on the network had dwindled. After reaching its peak of 2.4 million users on the 16th of March, the number of daily active addresses fell by 1.3 million.

Stripe’s recent move could help SOL with an uptick in activity in the future.

Source: Artemis

However, there were other areas that Solana continued to struggle with. In the DeFi sector, the blockchain continued to see a decline in its TVL (Total Value Locked).

Moreover, the DEX (Decentralized Exchange) volumes on the network had also fallen. All of these factors indicated that users were losing interest in Solana’s DeFi offerings.

If Solana wants to maintain its upward momentum in terms of adoption and activity, it would need to attract new users to it’s DeFi ventures.

Source: Artemis

Read Solana’s [SOL] Price Prediction 2024-25

How is SOL doing?

At press time, SOL was trading at $142.75 and its price had fallen by 1.63% in the last 24 hours. The social volume around SOL had also declined in the last few days, indicating that the popularity of network was declining.

Additionally, the weighted sentiment around the SOL token had also fallen, suggesting that negative comments were on the rise.