Solana DEX Participants Decrease in Numbers
According to data from Dune Analytics, Solana’s decentralized exchange (DEX) network has seen a drop in user engagement, reflecting the overall bearish trends in the cryptocurrency market. The daily unique DEX trader count on Solana has significantly decreased, aligning with a decline in the platform’s price.
The graph from Dune Analytics illustrates the fluctuations in unique trader counts across different blockchain networks from January 2023 to June 2024. Solana’s DEX network, highlighted in yellow, reached a peak in activity around early 2024 with approximately 600,000 unique traders. However, recent data shows a sharp decline in activity, falling below 400,000 unique traders by mid-2024.
Price Struggle for Solana Amid DEX Decline
Solana’s price has dropped by 5.53% in the past 24 hours, trading at $136.67. The price has decreased by 10% since the beginning of the week, forming a descending channel pattern in the 1-day timeframe, indicating a potential further decline.
The 50-day EMA serves as resistance, while the 200-day EMA acts as support, reflecting a mixed market sentiment. The MACD displays a constant red histogram and declining averages, indicating weak bullish momentum.
Solana’s market cap has fallen by $20 billion, reaching $63.114 billion. The fully diluted valuation (FDV) stands at $79.038 billion. The decrease in SOL’s price correlates with reduced DEX activity and a stagnant total value locked (TVL) in the Solana ecosystem. Projects like Jito, Marinade, and Kamino have also seen modest declines in SOL reserves.
On-Chain Performance of Solana
Solana’s TVL currently stands at $4.086 billion, with a stablecoins market cap of $2.933 billion. In the last 24 hours, Solana has generated $1.73 million in fees and $866,389 in revenue. The network has recorded $1.632 billion in trading volume over the past 24 hours and $9.953 billion over the last week, with a 3.78% weekly decline. DEX dominance on Solana is at 7.62%.
Solana faces competition from layer-1 alternatives and Ethereum’s layer-2 ecosystem, with TVL surpassing $40 billion. Blockchains like Arbitrum, Base, and Optimism have exceeded Solana in DApps activity. The increase in the U.S. dollar index has also dampened investor risk appetite, contributing to the bearish sentiment surrounding SOL.