Solana Celebrates 5th Anniversary... Network Activity Shows Declining Trend

Solana (SOL), a cryptocurrency that has been struggling in the market recently, has reached its 5th anniversary. There is growing interest in whether Solana can escape its crisis through major upgrades scheduled for release this year.

According to cryptocurrency media outlet The Block on the 16th (local time), Solana celebrated its 5th anniversary today. Regardless of the anniversary, Solana has not been performing well in the market recently. As of 7:03 AM on the 17th (Korean time), Solana is trading at $126.50, down 6.82% from the previous day according to CoinMarketCap.

Investor sentiment toward Solana has reportedly worsened as network activity has decreased dramatically in recent months. The number of active addresses on the Solana network has been decreasing every month since reaching its peak last November.

Pump.fun, a meme coin creation protocol based on Solana, is cited as the most decisive factor affecting the decrease in activity within the Solana network. Pump.fun received significant attention in the market after its launch in May last year. Many investors were intrigued by the fact that anyone could easily create meme coins and promote them to earn profits, which led to a surge in network activity.

However, the number of Pump.fun users has been rapidly declining this year. Users became angry after allegations of rug pulls and insider trading emerged regarding some meme coins associated with celebrities, such as Argentina's meme coin project LIBRA and MELANIA.

Meanwhile, Solana is preparing for the full release of Jump Crypto's Firedancer this year. Firedancer is an update aimed at significantly improving transaction processing capabilities and network security. The Block assessed that "Firedancer will be a great help for Solana to achieve its goal of processing one million transactions per second."