Solana has experienced a whopping 88% plunge in token growth, according to fresh data provided by Dune Analytics.
Only 330,000 tokens were created in February. This represents a very steep drop compared to the previous month (more than 2.3 million tokens were created in January).
The total number of unique crypto tokens increased only by an infinitesimal 0.8% on the month-over-month basis.
As noted by prominent cryptocurrency analyst Conor Grogan, this is the lowest growth rate recorded to date based on the available data.
Grogan believes that this rapid decline could be attributed to the waning activity of bot farms.
"As the majority of the tokens created are from bot/scam farms, this slowdown to me is a sign that retail audience is no longer falling for as many scams, and thus the token farms are no longer as profitable to operate at scale," Grogan said.
Earlier this month, Solana analyst Miles Deutscher noted that the number of new Solana addresses had experienced a dramatic 53% drop. Notably, it is similar to the network's peak decline last summer. Deutscher has predicted that Solana could soon possibly start reaching a bottom in on-chain metrics.
As reported by U.Today, there has also been a dramatic decrease in holdings among Solana (SOL) whales. This has adversely affected the performance of one of the most prominent altcoins.
According to data provided by CoinGecko, the token is down a whopping 30% over the past month.
Dan Burgin
Vladislav Sopov