The decline in Solana daily trading volume on decentralized exchange. According to data from Artemis, as of May 26, the volume was reported at $984 million, down from over $1.5 billion just three days earlier.
Table of Contents
Solana Daily Trading Volume
The Solana daily trading volume on decentralized exchanges (DEXs) has seen a significant decrease. According to data from Artemis, as of May 26, the volume was reported at $984 million, down from over $1.5 billion just three days earlier.
https://app.artemis.xyz/project/solana
This decline is in stark contrast to the record levels seen in April, where Solana’s DEX volume reached an aggregated monthly high of $60 billion. As May comes to a close, it appears the total trading volume for the month will be lower than previous records.
Fading Interest in meme tokens
This reduction in volume might be linked to the fading interest in meme tokens on the Solana network, which previously contributed to increased volatility. Consequently, this shift has seemingly pushed Solana’s native token, SOL, into the background. SOL is priced at $161.49, having dropped from nearly $190 a few days prior.
https://coinmarketcap.com/currencies/solana/
If the DEX volume continues to decline, SOL’s price might follow suit due to its dependency on meme token transactions. While some meme tokens allow swaps with USDC, most require SOL, meaning a decrease in meme token purchases could lead to a reduction in SOL demand. Additionally, other metrics may provide insights into Solana’s price direction.
Open Interest (OI)
A key metric for Solana is the open interest (OI) in contracts. According to Sentiments data, OI has decreased to $1.90 billion, down from nearly $2.20 billion as of May 20. OI represents the total value of all open positions in a contract, and an increase in OI typically indicates rising net positions and more money entering the market, which is a bullish signal.
For instance, when OI increased, SOL’s price rose to $188.45. However, the recent decline in OI suggests increased liquidity is being withdrawn from SOL contracts, weakening the strength of any potential upward trend.
If this trend continues, SOL’s price might fall further, potentially reaching $145.90. Moreover, Solana is starting to lag behind other blockchains in terms of activity. Competing projects like Aptos (APT) and Sui (SUI) are giving Solana stiff competition. Whether these projects can consistently outperform Solana transactions and endure over time remains uncertain. If they do, Solana could lose a portion of its market value along with its price.
Conclusion
To conclude, the declining Solana daily trading volume and fading interest in meme tokens are putting downward pressure on Solana’s price and market position. Continued competition from emerging blockchains may further challenge Solana’s dominance and market value.
- Don’t Forget more News and Research articles at
- https://techironed.com/