Solana Daily Active Addresses Surpass One Million: Data Reveals Key Role of WEN Airdrop and Jupiter
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Solana Daily Active Addresses Surpass One Million: Data Reveals Key Role of WEN Airdrop and Jupiter
Jupiter, the application driving the majority of new active addresses, will conduct one of the most anticipated airdrops on January 31, 2024.
Navigating Web3 tides with focused insightsAuthor: JON MA, CEO of Artemis
Translation: TechFlow
Introduction
On January 26, 2024, Solana surpassed one million daily active addresses—a milestone last seen in mid-December 2023. This resurgence has sparked discussions about the drivers behind Solana’s user activity growth. This article analyzes on-chain activities on Solana on January 26, 2024, and investigates which applications and users contributed to this surge.
Main Content
On January 26, 2024, Solana recorded over one million daily active addresses.
According to Coingecko data, the last time Solana exceeded one million daily active addresses was between December 15–17, 2023—coinciding with the peak and subsequent decline of $BONK's price.
This raises a question: what drove user activity on Solana on January 26, 2024? Which applications or users fueled the increase in active addresses?
In this article, we aim to answer these questions. We developed the Activity Monitor to help analysts understand what drives on-chain activity. Can we use this tool to identify which applications or users are driving network usage when we observe increases in metrics like fees, daily transactions, or daily active addresses across networks such as Ethereum, Polygon, and Solana?
In today’s analysis, we use Activity Monitor to better understand what occurred on Solana on January 26, 2024. Overall, the rise in active addresses was primarily driven by the $WEN airdrop. $WEN is a community token on Solana distributed to wallets that swapped more than $5 on Jupiter, holders of Ovols NFTs, blue-chip NFTs, or Genesis Saga NFTs.
Which Applications and Users Drove Solana’s User Growth?
Using Activity Monitor, we observed that DeFi and token transfers significantly boosted active address counts over the past 24 hours: DeFi users increased from 178,000 on Thursday, January 25, to 400,000 on Friday, January 26. Similarly, active addresses involved in token transfers rose from approximately 55,000 on Thursday to 167,000 on Friday.
Notably, on January 26, 2024, 37% of Solana’s daily active addresses were new—these could be new wallets from first-time users joining Solana, or bots creating new wallets and addresses to exploit opportunities on Jupiter or the $WEN airdrop.
Which application drove the most new active addresses? By examining the application breakdown below, we find it was Jupiter—Solana’s DEX aggregator, which is expected to conduct one of the most anticipated airdrops on January 31, 2024.
We see that over 520,000 active addresses interacted with Jupiter’s smart contracts, consisting mostly of existing users (62%) and new users (38%).
Notably, the average gas consumption per user on Jupiter (total gas fees paid on Jupiter divided by the number of daily active addresses) was approximately $0.30, compared to $0.49 across Solana as a whole. By contrast, Ethereum’s average gas cost per user stands at $13.55. Solana’s lower transaction fees make it easier for users to perform more on-chain transactions.
Why Was Activity Higher on Jupiter?
In short, anticipation around the $WEN and $JUP airdrops.
Background
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According to Stepn Finance data, over 117,000 addresses were active at the same time yesterday during the airdrop;
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Phantom experienced performance issues due to heavy activity surrounding the $WEN airdrop;
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On Jupiter, there was significant trading volume between SOL and USDC (around $52.7 million), along with approximately $48 million in trading volume between WEN and SOL/USDC.
Our hypotheses for what drove token transfer volumes (transfers unrelated to SOL, assumed to be $WEN transfers between wallets and smart contracts) and swaps on Jupiter include:
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Investors looking to buy (or sell) $WEN on Jupiter: Given the price surges of $WIF and $BONK, investors may be positioning themselves ahead of another potential meme coin rally.
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Users aiming to qualify for the $WEN and $JUP airdrops: However, it should be noted that actions taken on January 26, 2024, do not affect eligibility for either airdrop:
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$WEN airdrop eligibility required at least $5 in trades within the six months prior to January 19, 2024. Therefore, any actions after January 19 do not impact eligibility or allocation amounts, as the airdrop is evenly distributed to all qualifying wallets. (Source: https://lfg.jup.ag/wen)
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$JUP airdrop eligibility required activity before November 2, 2023, so no actions after that date affect qualification.
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Conclusion
Investors and protocols alike face the question: which set of applications will ultimately drive the next wave of crypto user growth?
Phantom shared in its 2023 Year in Review that in the three months following Breakpoint—specifically from September to December 2023—it saw over 600,000 app installations, coinciding with Solana’s price increase, the conclusion of the FTX trial, and the JTO airdrop.
As seen in the spikes of new active addresses in mid-December 2023 and on January 26, 2024, memes like $WIF, $BONK, and $WEN, along with anticipation of upcoming airdrops, clearly play a significant role in attracting new users.
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