Solana (SOL) decentralized exchange (DEX) trading volume hits new lows, down 72% over the past week. The decline may be due to a decline in interest in memecoins. The VR Soldier team tried to figure out why fewer people are trading on the Solana DEX and what awaits the SOL token in the near future.
Interest in Solana is fading
Last week, the crypto market experienced a global downturn. Then, some SOL-based memecoins managed to buck the trend and, on the contrary, temporarily soar in price. However, investors’ interest in these assets soon began to wane, and along with it, trading volumes on decentralized exchanges (DEX) built on the network also declined.
According to Artemis, trading volume on the SOL DEX network has fallen 72% over the past seven days. On Sunday, it was $897 million, the lowest since June 30. This trend reflects a general decline in user activity on the network. Over the past week, the number of addresses making at least one transaction on Solana per day has decreased by 19%.
A decrease in the number of active addresses in the network indicates that user interest or engagement is falling. This can happen for a variety of reasons. This time, the general decline in interest in meme coins may have worked against Solana.
SOL Forecast: New Lows Ahead
At the time of publication, SOL is trading at $147.59. Over the past 24 hours, the cryptocurrency has fallen by 2.4%, and over the week it has grown by 33.9%.
The Solana Chaikin Money Flow (CMF) indicator is currently at its center line at 0. This indicates indecision in the market as both buyers and sellers are starting to avoid trading this asset.
Given the CMF values, the altcoin is currently in a risky position. There is a risk of a breakout in either direction for SOL. If demand increases, Solana could rise to $148.27 and continue its upward movement. If selling pressure prevails, the SOL rate risks collapsing to $133.64.
