In a notable shift within the cryptocurrency landscape, Solana has recently outstripped Ethereum in terms of daily active users, according to data from Artemix. On November 11, Solana's user count spiked to 356,300, an increase from just over 200,000 on November 7. This surge pushed Solana ahead of Ethereum, which had 330,000 users on the same day.
The rise in Solana's user base comes after a tumultuous period for the digital asset. The cryptocurrency experienced a dramatic 96% decline in its price, falling from its peak of $250 to under $10 between November 2021 and January 2022. This plunge was largely attributed to the broader bear market and the high-profile bankruptcy of cryptocurrency exchange FTX.
Despite these challenges, Solana has shown signs of a robust recovery. Over the past four weeks, its price has soared by 145%, while the total value locked (TVL) in its DeFi protocols has witnessed a 62% increase, as reported by DeFi Llama. Contributing factors to this rebound include the "firedancer" upgrade to the Solana network and tempered fears regarding the potential sale of SOL by FTX's estate.
In addition to these improvements in network performance and asset value, Solana's non-fungible token (NFT) market has also seen a significant uptick. Crypto Slam reported a 35% increase in NFT sales volume over the last month.
While Solana's recent metrics are impressive, Ethereum continues to maintain a larger overall user base when taking into account its Layer 2 networks. Token Terminal data indicates that Ethereum has over 800,000 users across these networks, which are responsible for driving 80% of activity within its ecosystem, as per L2beat.
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