Solana network growth surges 124% as ETF outflows weigh on SOL

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Solana network growth surges 124%

Highlights

Solana network growth surged 124%.
Spot SOL ETFs saw three days of outflows.
SOL fell despite stronger on-chain activity.

Solana added approximately 1.71 million new wallets daily after network growth increased 124% from early September, according to Santiment. The expansion coincided with weaker demand for U.S. spot Solana exchange-traded funds, highlighting a widening gap between blockchain adoption and investor appetite for SOL, BeInCrypto reports.

Network activity strengthens the long-term outlook

Santiment measures network growth through addresses interacting with a blockchain for the first time. Solana's daily active addresses also increased 58% over the same period, reaching approximately 4.27 million. The figures suggest that participation is expanding beyond existing users, although wallet counts do not necessarily correspond to the number of individual people using the network.

Santiment considers sustained user growth a potentially favorable indicator for network valuation. Greater participation can support transaction activity and demand for blockchain services, but it does not guarantee appreciation in SOL. The relationship depends partly on whether new addresses represent lasting economic activity rather than temporary speculation or automated transactions.

ETF withdrawals reveal weaker investor demand

Institutional flows present a different picture from Solana's on-chain activity. U.S. spot Solana ETFs attracted $188.2 million during the week ending September 25, but inflows slowed to just $2.4 million the following week. The funds subsequently recorded three consecutive sessions of withdrawals through October 7, totaling $17.7 million, according to SoSoValue data.

The pullback comes amid broader caution toward digital assets. Spot Ethereum ETFs have also experienced sustained withdrawals, while minutes from the Federal Reserve's September meeting indicated that most policymakers considered another interest rate increase appropriate before year-end. U.S. inflation figures scheduled for October 14 could influence expectations ahead of the Fed's October 28 policy decision.

Solana price faces a test of investor confidence

SOL traded at $111.92, down $4.38, or 3.77%. The decline underscores how quickly macroeconomic uncertainty and investment flows can outweigh improvements in blockchain usage. Historical October performance offers little reassurance: Solana has posted gains in three of the past six completed Octobers, with a median monthly return of negative 1.59%.

The divergence matters because growing network participation and rising token prices are not interchangeable measures of success. Solana's expanding address base may strengthen its long-term position, but sustained demand for SOL will depend on whether that activity generates economic value and whether investors regain confidence in the broader cryptocurrency market.

We also reported the Solana Foundation introduces DvP rail for institutional trades.

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