Solana (SOL) 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.

Trading volumes on the Solana (CRYPTO: SOL) decentralized exchange (DEX) have hit new lows, decreasing by 72% over the past week, according to Artemis.

This decline may be attributed to a decrease in interest in memecoins, which are heavily traded on the Solana DEX.

As reported by Artemis, the last time trading volume was this low was on June 30 at $897 million, which is significantly lower than the $3.2 billion recorded on August 14.

This decrease is also reflected in the number of active addresses on the Solana network, with those making at least one transaction per day decreasing by 19% over the past week.

A decrease in the number of active addresses in the network indicates that user interest or engagement is falling, which can occur for various reasons.

In this case, the diminishing interest in meme coins may have adversely affected Solana, given the large volume of memecoin trades on the Solana DEX.

As of press time, SOL is trading at $147.59, having encountered a 2.4% decrease over the past 24 hours and a 33.9% increase for the week.

The Chaikin Money Flow (CMF) indicator for Solana is currently at the center line (0), which indicates indecision in the market as both buyers and sellers are starting to avoid trading this asset.

At these CMF values, the altcoin is in a risky position, with the potential for a breakout in either direction.

If demand increases, Solana could rise to $148.27 and continue its upward movement. However, if selling pressure prevails, the SOL rate risks collapsing to $133.64.

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