Solana DEX Network Activity Crashes Amid Market Downturn

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Solana DEX users drop

NAIROBI (CoinChapter.com) — Solana’s decentralized exchange (DEX) network has experienced a decline in activity, mirroring broader bearish trends in the cryptocurrency market. According to data from Dune Analytics, Solana’s daily unique DEX trader count has significantly decreased, marking a downturn in user engagement. This drop in activity coincides with a decline in Solana’s price.

*Solana DEX Network Activity. Source: Dune Analytics*

The graph from Dune Analytics highlights the fluctuations in unique trader counts across various blockchain networks from January 2023 to June 2024. Solana’s DEX network, marked in yellow, showed a peak in activity around early 2024, reaching approximately 600,000 unique traders. However, recent data indicate a steep decline in activity, dropping below 400,000 unique traders by mid-2024.

Solana’s Price Struggles Amid DEX Decline

Solana’s price dropped 5.53% in the past 24 hours, trading at $136.67. Since the start of the week, the price has declined by 10%, forming a descending channel pattern in the 1-day timeframe, suggesting a further potential decline.

*SOL/USD 1-day price chart. Source: TradingView*

The 50-day EMA acts as resistance, while the 200-day EMA provides support, reflecting mixed market sentiment. The MACD shows a constant red histogram and declining averages, signaling weak bullish momentum.

*Top blockchains ranked by 7-day DApps volume in U.S. dollars. Source: DappRadar*

Solana’s market cap decreased by $20 billion, dropping to $63.114 billion. The fully diluted valuation (FDV) stands at $79.038 billion. The decline in SOL’s price coincides with reduced DEX activity and a stagnant total value locked (TVL) across the Solana ecosystem. Projects like Jito, Marinade, and Kamino have experienced modest declines in SOL reserves.

Solana’s On-Chain Performance

Solana’s TVL is $4.086 billion, with a stablecoins market cap of $2.933 billion. In the past 24 hours, Solana generated $1.73 million in fees and $866,389 in revenue. The network recorded $1.632 billion in trading volume over the last 24 hours and $9.953 billion over the past week, a 3.78% weekly decline. DEX dominance on Solana is 7.62%.

Solana faces competition from layer-1 alternatives and Ethereum’s layer-2 ecosystem, with TVL above $40 billion. Blockchains like Arbitrum, Base, and Optimism have surpassed Solana in DApps activity. The rise in the U.S. dollar index has also dampened investor risk appetite, contributing to the bearish sentiment around SOL.

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