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Solana DEX Trading Volume Drops to $2.61 Billion, Lowest Since Mid-December
The Solana decentralized exchange (DEX) trading volume has taken a significant hit, plummeting to an alarming low of $2.61 billion on February 16th. This marks the first time the figure has dipped this low since mid-December.
Raydium and Orca have borne the brunt of this decline, with their volumes taking a devastating plunge of over 45% and nearly 30%, respectively. On the other hand, Meteora surprisingly defied this downward trend by witnessing an astonishing 18% surge in trading volume.
Solana’s decentralized exchanges saw a staggering $20.2 billion worth of trades during the week ending February 16th, marking a stark five-week decline. This downturn is mirrored in the platform’s on-chain transaction volume, which dropped a dismal 28% over the preceding seven days to reach a lowly $31.8 billion by February 10th.
The synchronized downturn in Solana DEX trading volumes corresponds with an overarching market downturn. Raydium and Orca, the two top-performing exchanges, saw their trading volumes dwindle to $836.37 million and $544.4 million respectively, placing them firmly behind Meteora’s impressive performance of $658 million.
The precipitous drop in Solana DEX volume can be attributed partially to the waning enthusiasm for meme coin trading. Since the start of the bull run, this trend has witnessed a meteoric rise. However, as numerous meme coins have emerged and vanished from the market, traders are growing increasingly disillusioned with the recurring pump-and-dump cycles, rug pulls, and instances of insider trading. This sentiment was echoed by CryptoQuant analyst Axel Adler Junior, who posited that meme coin activity is having a detrimental impact on the Solana ecosystem.
Furthermore, a recent rug pull involving LIBRA has led to increased market uncertainty, contributing to SOL’s decline of over 10% in the past week and an alarming 40% from its peak in January. The impending unlocking of 11.2 million SOL tokens on March 1 will only serve to exacerbate this anxiety.
In conclusion, Solana DEX trading volume has hit a six-week low, with significant declines across the board.
Source: cryptopotato.com
