Solana's daily active addresses exceed one million, data reveals the key driving role of WEN airdrop and Jupiter

On January 26, 2024, Solana’s daily active addresses exceeded 1 million. This number last appeared in mid-December 2023. The breakthrough sparked discussion about the drivers of growth in Solana's user activity. This article will analyze the activity that occurred on Solana on January 26, 2024, and explore the applications and users driving this growth.

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On January 26, 2024, Solana’s daily active addresses exceeded 1 million.

According to data from Coingecko, Solana recorded over 1 million daily active addresses between December 15 and 17, 2023, coinciding with the peaks and declines in $BONK price. consistent.

This begs the question, what is driving user activity on Solana on January 26, 2024? Which applications or users are driving the growth in active addresses?

In this article, we try to answer the above questions. We built Activity Monitor to help analysts understand what drives on-chain activity. And if we see an increase in network activity (such as fees, daily transactions, or daily active addresses) on Ethereum, Polygon, Solana, etc., can we use this tool to better understand what applications or users are driving usage of the chain?

In today’s article, we use Activity Monitor to better understand what happened on Solana on January 26, 2024. Overall, there has been a significant increase in active addresses driven by the $WEN airdrop. $WEN is a community token on Solana that is distributed to wallet holders who exchange more than $5 on Jupiter, Ovols NFT holders, Blue Chip NFT holders, or Genesis Saga holders. The purpose of this airdrop campaign is to incentivize and reward participants in the Solana ecosystem. By distributing $WEN tokens, the project team hopes to attract more users to participate and increase the activity of the Solana network. This initiative has a positive impact on the development and promotion of the Solana ecosystem, while also bringing real economic returns to participants.

Which applications and users are driving Solana user growth?

Using Activity Monitor, we see that DeFi and token transfers have driven the growth of a large number of active addresses in the past 24 hours: DeFi users increased from 178,000 on Thursday, January 25th to January 26th 400,000 on Friday. Likewise, the number of active addresses transferring tokens grew from approximately 55,000 on Thursday to 167,000 on Friday.

It is worth noting that on January 26, 2024, 37% of the daily active addresses on Solana were new. They may be new wallets and new ones joining Solana. New wallets and addresses opened by users, or possibly bots, to take advantage of the Jupiter or $WEN airdrops.

What application drives the most new active addresses? Looking at the application table below, we find that Jupiter, the DEX aggregator on Solana, will be conducting one of the most anticipated airdrops on January 31, 2024.

We see that more than 520,000 active addresses interact with Jupiter’s smart contracts, with the majority being old users (62%) and new users (38%).

It is worth noting that the average gas consumption per user on Jupiter (total gas fees paid on Jupiter / total number of Jupiter daily active addresses) is approximately $0.3 , while on Solana overall it is $0.49. Using Ethereum as a benchmark, the average gas consumption per user is $13.55. Solana’s lower gas fees make it easier to conduct more transactions on the chain.

Why is there more activity on Jupiter?

In short, this is what to expect from the $WEN airdrop and $JUP airdrop.

Background

• According to data from Stepn Finance, during the airdrop period, more than 117,000 addresses were active at the same time yesterday

• Due to the large amount of activity surrounding the WEN airdrop, Phantom has experienced some performance issues

• On Jupiter, a large number of exchanges took place yesterday between SOL-USDC (52.7 million transaction volume), in addition, WEN had approximately $48 million in transaction volume between SOL and USDC.

We compare the driving token transfer volume (transfers not related to SOL, so considered $WEN transfers between wallets/smart contracts) and Speculations for the exchange on Jupiter are:

• Investors looking to buy (or sell) $WEN on Jupiter: Given the rising prices of $WIF and $BONK, investors may Hopefully get ready for another Meme price increase.

• Those aiming to obtain the $WEN airdrop and Jupiter airdrop: However, it is worth noting that actions taken on January 26, 2024 do not affect eligibility for the two token airdrops :

  • $WEN's shortlist eligibility requires at least $5 to be exchanged within the past 6 months until January 19, 2024, so any action taken after January 19th will There will be no impact on airdrop eligibility or amount, as airdrops are distributed equally to each eligible wallet. (Source: https://lfg.jup.ag/wen)

  • $JUP air investment eligibility requires action to be taken before November 2, 2023, so actions taken after this point in time None of the actions will affect the eligibility of the air investment

Conclusion

There is a question for both investors and protocols, which set of applications will Ultimately driving the next wave of crypto user growth.

Phantom shared in its 2023 Year in Review that in the 3 months since Breakpoint, between September and December 2023, there were more than 600,000 installations, which also coincided with the Solana price increase , the end of the FTX trial coincides with the JTO airdrop.

As we saw in the growth in the number of new active addresses in mid-December 2023 and January 26, 2024, it seems like $WIF, $BONK, Memes like $WEN and the anticipation of airdrops obviously play a big role in attracting new users.

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