After months of decline, a key metric of Solana [SOL] has spiked considerably, reflecting increased usage.
As per Dune, a data intelligence platform, Solana’s unique active users have risen this month. Apart from increased usage, a hike in the metric also suggested higher adoption of the blockchain.
Solana metrics have a catch
Though an increase in the number of unique users represents higher usage and adoption, this time, the case was different. Several other key network stats registered declines, which suggested less usage of the blockchain.
- For instance, as per Artemis’ data, Solana’s number of daily transitions gained downward momentum and has been declining for the past few months.
- SOL’s DEX volume has also sunk, reflecting a lower willingness of investors to trade the token.
In the last 24 hours alone, its price went up by nearly 2%. At the time of writing, it was trading at $20.83 with a market capitalization of more than $8 billion, making it the 10th largest crypto by market cap.
The market’s confidence in SOL is rising
Solana’s latest uptrend was accompanied by a surge in its trading volume, providing a foundation for the price increase. SOL’s social volume revealed that the token’s popularity was also high. Sentiment around SOL improved over the last few days, as evident from the rise in its weighted sentiment.
In addition, LunarCrush’s data pointed out that in the last 24 hours, SOL’s bullish sentiment increased by more than 100%. Another positive metric was SOL’s Galaxy Score, which increased, which gave hope for a further price pump in the coming days.
Is a further pump likely?
A look at Solana’s daily chart gave more reasons to celebrate, as a few market indicators were bullish on the token. The distance between the 20-day Exponential Moving Average (EMA) and the 55-day EMA was reducing, suggesting that the bulls were stepping up their game.
SOL’s MACD already displayed a bullish crossover. Its Relative Strength Index (RSI) was above the neutral mark, which is bullish. However, the Money Flow Index (MFI) registered a downtick, which can cause trouble.