Solana’s active wallet count has soared past 100 million, marking a new milestone for the blockchain network, according to Artemis Terminal. This is a significant leap from the 509,000 active wallets recorded at the start of 2024. Despite this achievement, most of these wallets appear to hold little or no Solana (SOL), raising questions about the nature of this growth.

Majority of Wallets Hold No Solana

Blockchain data provider Hello Moon reports that over 86 million wallets held 0 SOL in the past month, while around 15.5 million held less than 1 SOL. Some analysts, including Justin d’Anethan of Keyrock, suggest that this points to non-organic growth, possibly driven by bots artificially inflating metrics. Dan Hughes, the founder of Radix DLT, explained that empty wallets could also be due to interactions with centralized exchanges and DeFi platforms, where proxy addresses are often used.

Observers react to Solana’s active user growth. Source: SolanaFloor, bobasfk

Bots and Low Fees Fuel Growth

Solana’s efficiency, characterized by low transaction fees and fast processing speeds, has made it an attractive platform for bots. Critics argue that bots inflate Solana’s activity beyond genuine human transactions. However, Austin Federa from the Solana Foundation noted that bot transactions still contribute to network fees, which are vital for managing Solana’s long-term inflation goals. As of October 9, Solana ranks as the third-largest blockchain for DeFi, with a total value locked (TVL) of $5.41 billion, continuing to show strong growth despite concerns about the nature of its active user base.