Solana DEX Volume Plunge: What Will Follow the Meme Coin Crash?
As trading on its decentralized exchanges and futures open interest decreased, the price of Solana became trapped in a deep bear market. Solana has increased over the past two weeks, and from its August low, it has increased by more than 33%. Even yet, it is still in a bear market, having dropped more than 30% from the peak for the year.
The sell-off in Solana occurred as a result of a decline in volume during the previous several weeks on its DEX platforms. DeFi Llama’s data indicates that throughout the last seven days, its DEX volume decreased by more than 45%. It has processed transactions totaling $7.12 billion throughout this time, compared to $8.9 billion for Ethereum.
- The current meme coin sell-off has caused Solana DEX volume to decline.
- In the last few months, popular Solana memes including Dogwifhat, Bonk, Popcat, and Book of Meme have all dropped by more than 50%.
Solana Tops Meme Coin Production: Why is the Futures Market Stagnant?
Due to its cheap transaction fees and quick speeds, Solana has emerged as the most preferred chain for making meme coins. The Solana meme coin launch process has been simplified with the introduction of Pump.fun, a meme coin generator.
Solana’s active participation in the futures market has stagnated in the interim. The open interest in futures on August 18, according to CoinGlass, was about $2 billion, which is the same amount as it had been for the previous five days. Comparing the interest rate to its peak of $3.08 billion on July 30, it is substantially lower.
- Given the sharp liquidations that occurred earlier this month as cryptocurrency prices plummeted, the declining open interest is probably the result.
- On August 8, Solana’s shorts sold for a total of $21 million, while the bulls lost nearly $39 million.
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