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Solana DEX Trading Volume Drops to $2.61 Billion, Lowest Since Mid-December
The decentralized exchanges (DEXs) on the Solana blockchain have witnessed a significant decline in trading volume, with the weekly metric plummeting to $2.61 billion as of February 16th. This represents the lowest figure since mid-December, according to data compiled by DeFiLlama.
As the cryptocurrency market continues to experience a downturn, it appears that traders are growing increasingly cautious, resulting in this substantial drop-off. Over the past week, Solana’s on-chain transaction volume also decreased by 28%, with a total of $31.8 billion in transactions processed by February 10th.
The data highlights Raydium and Orca as the largest DEXs on the network, with trading volumes of $836.37 million and $544.4 million respectively. Meteora, another prominent player, bucked the trend by reporting an impressive 18% increase in trading volume to reach a staggering $658 million.
Industry experts attribute this decline in activity to the waning enthusiasm for meme coin trading. The recent surge in popularity of these novelty tokens has been characterized as unsustainable and is now starting to lose steam. Investors have grown weary of repeated pump-and-dump cycles, rug pulls, and instances of insider trading, leading to a substantial decrease in volume.
CryptoQuant analyst Axel Adler Junior further emphasized the impact of meme coins on Solana’s ecosystem, stating that recent events have shaken investor confidence and contributed to a decline of over 10% in SOL’s value since the start of February. The impending unlock of 11.2 million SOL tokens on March 1 has only added to market pressures.
The decrease in trading volume is unlikely to stabilize anytime soon, as concerns about rug pulls and insider trading persist, further eroding investor trust.
Source: cryptopotato.com
