Solana ended 2022 with some of its key growth metrics down. So far this year, the chain has seen increased user activity.
Home to over 350 decentralized applications (dApps), a new one report Messari revealed that leading open-source blockchain Solana ended the 2022 trading year with a significant drop in key growth metrics and revenue.
Titled “State of Solana Q4 2022,” Messari found that the “ongoing bear market coupled with the collapse of FTX” negatively impacted the network’s growth between October and December 2022. This led to a severe decline in the user activity in the chain .
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Interestingly, while Solana experienced a drop in user activity in the fourth quarter of 2022, “average daily total transactions and transactions per second (TPS) still increased as network performance improved,” Messari said.
However, Solana’s improved performance in the fourth quarter of 2022, following a number of extended network outages earlier this year, did not positively impact Solana’s financial condition.
According to the report, average transaction costs on the network fell 49% in the fourth quarter of 2022. After falling for the entire trading year, average transaction costs on Solana fell 90.3% year-over-year, Messari noted.
In addition, the chain’s revenue fell 28% in the fourth quarter of 2022. “Total quarterly revenue was down 83.3% year-over-year,” the on-chain data provider found.
Further, the DeFi vertical of the Solana ecosystem took a massive hit to total value locked (TVL) in the fourth quarter. The report stated that the severe drop was mainly due to “Mango Markets operation in October and the collapse of FTX in November”. In SOL terms, Solana’s TVL was down 26% by the end of Q4 2022 due to the impact of FTX.
Regarding NFTs on the network, Messari found:
“Total daily new NFTs fell 65% QoQ for the first time. However, this decline came after a significant increase in the third quarter. Although the number of coins QoQ was lower, the average number of NFT coins per address increased, indicating that power users are on the rise.”
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User activity on Solana so far this year
According to data from The block, Solana has seen an increase in her daily account of active addresses since the beginning of the year. With 557,770 daily active addresses on January 18, the number of daily active addresses in the chain has grown by 47% since January 1.
Likewise, the number of new addresses in the chain has increased. According to The Block, this daily count of new addresses on Solana has grown 62% since the beginning of the year.
This post Solana [SOL] ended Q4 2022 with key growth metrics down
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