Solana’s Unique Active Wallets Growth

In this article, we look at the number of active wallets (signers) over the last seven days and analyze what trends we find?

What is Solana ?

The only difference between Solana and Ethereum is Solana’s high speed for transactions. It is a blockchain network for building cryptocurrencies just like Ethereum and Bitcoin. 50,000 transactions can be processed per second on this new blockchain network, which makes it unique. While Ethereum follows Proof of History(PoH), Solana follows Proof of Work(PoW). This puts them at odds with respect to the underlying technology they both use. Ethereum is a more mature and decentralized network, whereas Solana offers high-speed and low-cost transactions. When compared to bitcoin and ethereum’s blockchain networks, Solana can process transactions at a relatively low cost by combining PoH and PoS.

Analysis Of Unique Active Wallets On Solana

The following graph shows how many unique active members of Solana there are each day. Between January 1, 2022 and January 30, 2022, there were 6.89 million unique active wallets. The largest number of Unique Active Wallets was observed on January 25, 2022, and the smallest number was observed on January 22, 2022. There is an increasing trend in Unique Active Wallets . On January 22, 2022 there were fewer unique active wallets than normal, and on January 23, 2022 there were more unique active wallets than normal. From Jan 23 ,2022, it returned to normal and Unique wallets growth increased.

According to the tweet below, there will be a hit on solana on January 22, 2022. Defi users on the Solana platform suffered due to “excessive duplicate transactions” causing the outage. Some users said this resulted in forced liquidations and heavy losses.

Below is the below graph showing how much growth was seen in the wallets compared to the previous day.

In the graph below, we can see the different reciever names on which active users are interacting on Solana. Since the beginning of January 2022, Raydium AMM and Serum Vault are experiencing more transactions. But from Jan 18,2022 onwards we can see a lot of users are interacted with Switchboard. Observed maximum Transactions of 2.52M in January 30, 2022, and minimum Transactions of 637.47K in January 22, 2022. The trend of transactions is increasing.

Switchboard: On Switchboard, any user can publish on-chain data that can be used by smart contract developers to create smart contracts. Switchboard is a Solana-based community-driven decentralized oracle network. In the Solana network, the protocol is responsible for updating and routing external data based on an apparatus from the early days of telephone networks.

We can see the heatmap for Unique Active wallets over the past 7 days in the below graph. The total number of active wallets during the past 7 days was 2,757K. Maximum Active Wallets of 412K were observed on January 27, 2022 and minimum Active Wallets of 364K on January 26, 2022.

Observations

From the above analysis, The number of The number of unique wallets are on an upward trend since the beginning of January 2022, but suddenly there is a dip on January 22,2022. This was explained by Solana Team as “excessive duplicate transactions” were causing the outage.As a result, some users reported forced liquidations and heavy losses. On Jan 23,2022 there was another appearance of unique wallets. Here also we could see the number of unique active wallets were seen to be more interacted with Switchboard. Switchboard allows users to publish on-chain data that can be used by smart contract developers to build smart contracts. This may be what attracts users.

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