Number of daily active addresses on Solana hit a low point, but supporters of the network say that shouldn't be a reason for much concern.
But that's not indicative of a significant decrease in"actual" users, according to Solana Foundation's Austin Federa, acting head of strategy for the"There may be less bots running on the network, but what we are really looking at is how many humans are using the network," Federa told The Block."What we see is the actual humans, the wallets that are paying their own fees, the retention data, is still super solid.
The number of daily active addresses on Solana, using a seven-day moving average, dropped from more than 300,000 mid-August to around 204,000 at the end of the month, according toThe 7DMA metric shows the average value of a data point over the past week and can help spot trends."My assumption is there are fewer bots on the network because the economic incentives for bots to work on the network have been removed with a lot of these network upgrades.
"It’s [also] possible traders who before were running multiple bots to be able to try and land an arbitrage or do an NFT mint, they can now just pay a priority fee like they would on Ethereum," he added."Some of that may be responsible for a drop in active addresses [so] the same number of people may be using the network, but the active addresses may be down."
The Block Research Analyst Kevin Peng also doesn't appear worried by Solana’s recent drop in daily active addresses.ost Layer 1s have seen relatively little change since the beginning of the year,” he said, adding he has consistently been bullish when it comes to Solana. "The problem with using daily active addresses as a metric is that it can be easily manipulated or influenced by short term events," said Peng."A more meaningful metric is transaction fees, which directly reflects the amount of money users are willing to pay in order to use block space on a particular chain.
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