Solana’s TVL increases, but key metrics decline with the price

ambcrypto.com:

Solana [SOL] received a much-needed injection of positivity during the week as one of its chains infused liquidity into the network. While this development is certainly encouraging, it remains to be seen whether the injections will have a positive impact on other key metrics of the network. 

Read Solana [SOL] Price Prediction 2023-24

Artemis data revealed that Solana experienced a significant uptick in its Total Value Locked (TVL) for the first time in several months. Solana’s TVL has skyrocketed by over 21% in the past week alone, and transaction volumes have reached their highest point in three months. 

Source: Artemis

A post suggested that this surge in TVL could be attributed to HxroNetwork, a decentralized protocol on the Solana network, injecting a whopping $15 million of liquidity. This liquidity infusion has undoubtedly breathed new life into Solana’s network.

Following the remarkable increase in Solana’s Total Value Locked (TVL), it’s only natural to wonder if other key metrics on the network have also been impacted. Solscan was consulted to assess the status of active wallets and new token accounts on the platform.

A close inspection of Solana’s active wallet chart showed a steady decline in the number of active wallets on the network. The chart indicated that January was the only month in 2023 where active wallets surpassed 500,000. Since then, the figure has gradually decreased and hovers around 271,000, at the time of writing.

Source: solscan.io

Similarly, Solana’s new token account metric has also seen a significant decline. Over 600,000 new token accounts were created in January, but the number has been decreasing steadily ever since.

As of this writing, the figure stood at around 212,770, indicating a