Solana DEX Trading Volume Plunges to $2.61 Billion, Lowest Level Since Mid-December
Solana’s DEX Volume Downturn
Solana’s decentralized exchanges (DEXs) saw a significant decline in trading volume, with a total volume of $20.2 billion for the week ending February 16. This marks a five-week decline, with the on-chain transaction volume dropping by 28% in the previous week, reaching $31.8 billion by February 10th.
Top DEXs on Solana
According to DeFiLlama’s data, Meteora reported the most activity, with a volume of $658 million, closely followed by Raydium at $836.37 million. Orca is in the third spot with $544.4 million.
Fading Enthusiasm for Meme Coin Trading
The decline in Solana’s DEX volume is partly attributed to the waning enthusiasm for meme coin trading. Meme coins have been surging since the start of the bull run, but traders are now growing weary of repeated pump-and-dump cycles, rug pulls, and instances of insider trading. The sentiment was echoed by CryptoQuant analyst Axel Adler Junior, who stated that meme coins are negatively affecting the Solana ecosystem, with recent events further eroding investor confidence.
Rug Pulls and Market Pressures
A major rug pull involving LIBRA has intensified concerns, contributing to SOL’s decline, which has fallen by over 10% in the past week and 40% from its peak in January. Furthermore, 11.2 million SOL will be unlocked on March 1, which were initially sold off during FTX’s bankruptcy and later acquired by firms like Galaxy, Pantera, and Figure.
Conclusion
The decline in Solana’s DEX volume is a result of the broader market downturn and the waning enthusiasm for meme coin trading. The combination of rug pulls, market pressures, and the upcoming unlock of 11.2 million SOL will likely continue to impact the Solana ecosystem.
FAQs
Q: What is the current trading volume of Solana’s DEXs?
A: The current trading volume of Solana’s DEXs is $20.2 billion for the week ending February 16.
Q: Which DEX is reporting the most activity on Solana?
A: Meteora is reporting the most activity, with a volume of $658 million.
Q: What is the reason for the decline in Solana’s DEX volume?
A: The decline is attributed to the waning enthusiasm for meme coin trading, rug pulls, and market pressures.
Q: What is the upcoming unlock of SOL?
A: 11.2 million SOL will be unlocked on March 1, which were initially sold off during FTX’s bankruptcy and later acquired by firms like Galaxy, Pantera, and Figure.
