On-chain data shows a 400% increase in trading volume on decentralized exchanges (DEXs) supported by the Solana network last week. However, closer analysis indicates that the increase may not reflect real user engagement. The rise in trading volume across DEXs within the Solana network is primarily due to the recent surge in memecoins traded on Pump Fun.
What’s Happening on the Solana Front?
This memecoin creation platform based on Solana has gained popularity in recent weeks because it allows users to launch these memecoin projects for free. The platform saw significant interest towards the end of June and has since dominated activities on Solana DEXs. Data from Dune Analytics shows that transactions related to Pump Fun have consistently outpaced other activities on these exchanges since August. Access NEWSLINKER to get the latest technology news.
For example, on August 18, transactions related to Pump Fun accounted for 70% of all activities on Solana DEXs, leaving only a 30% share for other transactions. This dominance highlights how the platform is shaping the trading dynamics within Solana’s decentralized finance (DeFi) ecosystem.
Despite this increase in DEX trading, user activity within the Solana ecosystem has not seen a corresponding rise. On the contrary, daily active addresses on Solana dropped by 20% last week. This decline in user numbers also led to a decrease in the network’s daily transaction count. According to Artemis data, transactions fell by 6% over the past seven days. The primary impact of low user activity and transactions on a network is reduced fees and revenue. During the period under review, Solana’s transaction fees and network revenue dropped by 34%.
SOL Chart Analysis
At the time of writing, Solana is trading at $147.3, and price movements on the daily chart indicate a potential rise. Currently, the MACD line (blue) is positioned to cross above the signal line (orange). The MACD indicator tracks changes in price trends and momentum.
When the MACD line crosses above the signal line, it typically signals a shift from a bearish to a bullish trend, indicating a potential short-term rise. If SOL completes this transition and demand increases, its price could reach $148.27. However, if buying pressure decreases and bearish momentum prevails, SOL’s value could drop to $133.64.
- Solana DEX trading volume surged by 400% last week.
- Despite the surge, user activity on Solana dropped by 20%.
- Solana’s transaction fees and network revenue fell by 34%.
