Solana DEX participants decrease in numbers
CoinChapter.com on Google News
NAIROBI (CoinChapter.com) — The decentralized exchange (DEX) network of Solana has observed a decline in engagement, reflecting the broader bearish trends in the cryptocurrency market. According to data from Dune Analytics, the daily unique DEX trader count on Solana has notably dropped, indicating a decrease in user activity. This decrease in engagement aligns with a downturn in Solana’s price.
The data from Dune Analytics illustrates the variations in unique trader counts across different blockchain networks from January 2023 to June 2024. Solana’s DEX network, highlighted in yellow, experienced a peak in activity in early 2024, with around 600,000 unique traders. However, recent data shows a significant decline in activity, with the number of unique traders falling below 400,000 by mid-2024.
Struggles in Solana’s Price Amid DEX Decline
Solana’s price has decreased by 5.53% in the last 24 hours, trading at $136.67. Since the beginning of the week, the price has dropped by 10%, forming a descending channel pattern in the 1-day timeframe, indicating a potential further decline.
The 50-day EMA is acting as resistance, while the 200-day EMA is providing support, reflecting a mixed market sentiment. The MACD is showing 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 decline in SOL’s price correlates with reduced DEX activity and a stagnant total value locked (TVL) within the Solana ecosystem. Projects like Jito, Marinade, and Kamino have seen modest decreases in SOL reserves.
On-Chain Performance of Solana
Solana’s TVL is currently at $4.086 billion, with a stablecoins market cap of $2.933 billion. In the past 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 last 24 hours and $9.953 billion over the past week, showing a 3.78% weekly decline. DEX dominance on Solana stands at 7.62%.
Solana is facing competition from layer-1 alternatives and Ethereum’s layer-2 ecosystem, where TVL is above $40 billion. Blockchains like Arbitrum, Base, and Optimism have surpassed Solana in DApps activity. The increase in the U.S. dollar index has also led to a decrease in investor risk appetite, contributing to the bearish sentiment surrounding SOL.