Solana active addresses drop 42% in May as sentiment surges
Solana (SOL) saw a sharp slowdown in network engagement: weekly active addresses fell 42% from February to May, dropping to 2.89 million versus 5.01 million at the February peak, per Santiment data. Solana active addresses also showed a decline in wallet activity, with fewer wallets transferring SOL—yet social sentiment improved.
On X, Reddit, and Telegram, positivity is rising, with roughly 3.2 positive comments per negative one, and SOL sentiment reaching its highest level since January. The article frames this as a potential setup for a rebound after SOL lagged Bitcoin (BTC) and other large caps and returned toward average performance.
Price-wise, SOL has been consolidating between about $76 and $100 for 91 days, with resistance near $96.5. A break above $96.5 could open a move toward $120. The piece also cites renewed ETF flows from “just yesterday,” totaling millions of dollars, which may add momentum to spot prices after earlier underperformance in ETF channels.
Overall, the key tension for traders is that Solana active addresses are declining while sentiment and positioning improve—suggesting the market is optimistic, but a sustained move likely needs on-chain recovery to follow through.
Neutral
The article highlights a mixed signal set for SOL. On-chain metrics weaken: Solana active addresses fall sharply (down to 2.89M from 5.01M), and wallet transfer activity slows—typically a headwind for sustained rallies. At the same time, sentiment improves strongly (highest since January) and ETF inflows reportedly restart with millions in inflows, which often supports demand and can trigger short-term momentum.
Historically, SOL-like patterns—where social/positioning turns bullish while active address counts lag—often lead to either (1) a brief upside pop driven by sentiment/flows followed by consolidation, or (2) a delayed catch-up if on-chain participation reverses. The price section stresses a clear technical trigger ($96.5). Until Solana active addresses stabilize or rise, the probability of a breakout remains uncertain, keeping the overall market impact closer to neutral rather than decisively bullish.