Blockchain
The number of active cryptocurrency traders on Solana’s DEX is plummeting!
Sun 23 June 2024 ▪ 3 minute read ▪ by Luc Jose A.
The Solana ecosystem is in turmoil. Transaction volumes on decentralized blockchain exchanges (DEXs) have reached their lowest level since March, marking a significant decline that worries investors and cryptocurrency market participants. As enthusiasm for memecoins wanes, this new development raises questions about Solana’s future and resilience.
A marked downward trend
While in the previous months Solana Decentralized Exchanges (DEX) had broken all records, this is no longer the case! Transaction volumes on these crypto platforms have seen a dramatic decline of 22% over the past week, reaching an unprecedented low of $10 billion, a level not seen since February. At the same time, the number of active wallets on these crypto platforms also saw a decline of 27%, indicating a growing disinterest among users. This downward trend is also reflected in the price of SOL, which has fallen by 7.9% in the last 7 days.
Despite an eventful week for Solana, marked in particular by the turbulence related to the DJT memecoin, transaction volumes on the blockchain continue to decline. This situation raises concerns about blockchain’s ability to maintain its dynamism in the face of apparent disengagement from cryptocurrency traders and investors.
A hard blow for the Solana ecosystem
The number of active cryptocurrency traders on Solana, which had reached an all-time high of 2.9 million in early June, has dropped to 2.1 million in the past seven days. This sharp decline reflects a loss of confidence in the ecosystem, exacerbated by the disappointing performance of DogWifHat (WIF), Solana’s flagship memecoin. WIF, in fact, saw its price collapse by 7% in a week and collapse by more than 60% from the peak of $4.71 reached on March 31st.
Clearly, this decline in transaction volumes and the number of active traders on Solana is part of a broader context of retreat in the cryptocurrency market. Over the past week, Bitcoin has fallen by 2.2%, while the total cryptocurrency market capitalization has decreased by 3.4%. Solana will therefore have to navigate between consolidation and innovation to overcome these challenges.
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Luc Jose A.
Graduated in Science Po Tolosa and holder of a blockchain certification consultant issued by Alyra, I returned to participate in Cointribune in 2019. Capturing the potential of blockchain to transform numerous sectors of the economy, I have made a commitment to raise awareness and inform the great public about this constantly evolving ecosystem. My goal is to allow anyone to better understand blockchain and learn about the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to convey the latest technological innovations and to put into perspective the economic and social efforts of this revolution in brands.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be relied upon as investment advice. Do your research before making any investment decisions.