Last week’s excitement surrounding Solana-based meme coins has faded, as evidenced by a drop in trading activity on decentralized exchanges (DEXes). On-chain data has revealed that this fell to a 42-day low on Sunday.
Over the past week, the leading Layer 1 (L1) blockchain has experienced a general decline in user activity.
Solana Sees Drop in Network Demand
Amid last week’s general market downturn, leading meme assets on the Solana network experienced a temporary price boost. However, as the interest in these assets waned, so did the trading volumes across DEXes housed on the blockchain, where many of these assets are traded.
According to Artemis, Solana’s DEX volume has declined by 72% in the past seven days. On Sunday, it totaled $897 million, marking the network’s single-day lowest DEX volume since June 30.
The drop in DEX volume mirrors the general drop in user activity on the network. Over the past week, user activity has plummeted. During that period, the daily count of addresses that have completed at least one transaction on Solana has dropped by 19%.
Read more: Solana vs. Ethereum: An Ultimate Comparison
A decline in daily active addresses on a network signals reduced user engagement or interest. This drop in user interaction can happen for several reasons. Over the past week, Solana experienced such a drop in user activity, leading to a 2% decrease in its fees and revenue.
SOL Price Prediction: Coin Eyes New Lows
SOL trades at $146.31 at press time, climbing by 19% in the last seven days. However, readings from its Chaikin Money Flow (CMF) suggest indecision in the market as buyers and sellers alike begin to stay away from trading. At press time, SOL’s CMF rested on its center line at 0.
This indicator measures money flow into and out of an asset’s market. A CMF reading on the center line reflects weak momentum in either direction. It suggests there is no clear dominance of buying or selling activity, and the market might be consolidating.
Read more: Solana (SOL) Price Prediction 2024/2025/2030
This situation puts SOL at risk of a breakout in either direction. If demand increases, the price could edge up to $148.27 and continue its upward movement. However, if selling pressure intensifies, SOL’s value might fall to $133.64.
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