Activity on the Solana blockchain continues to decline. As of August 31, the number of daily users on the network dropped to 204,000.
This figure is the lowest since analysts began tracking the protocol's blockchain data in late 2020.
According to analysts at The Block, the decline in the number of active Solana users intensified after the collapse of cryptocurrency exchange FTX. In addition, activity continued to drop after the SEC designated the native SOL token as a security.
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An analyst for the publication has stated:
"The Solana ecosystem was already seeing a decline in active users prior to the collapse of FTX, but the fact that the blockchain had such strong ties to the exchange and Alameda Research [FTX’s sister trading firm] hurt its reputation a bit."
According to the DeFi Llama service, Solana ranks 10th in total value locked at $314.28 million.