SOL (SOL), an indigenous token of SOLANA, was closed for more than $ 220 on February 1, and is currently trading 32%from $ 295 for $ 295 from January 19. The latest reduction in Solana network activities can further weaken the probability of reclaiming strong momentum.
Solana Weekly Onchain Volume, USD. Source: Defillama
According to Defillama data, Solana’s onchain trading volume decreased by 28% over the end of February 10, down a total of $ 31 billion. The slowdown in DEX activity is likely to signal the end of Memecoin Frenzy, which reached its peak with the launch of the official Trump (Trump) token on January 19.
MEMECOIN transaction slump and commission reduction weight of SOL Price weight
The transaction and decrease are also weighed on token prices, and the fees are low, creating a negative feedback loop for the SOL as the incentives for staying are reduced. In Memecoin, Dogwifhat (WIF) fell 60%in 30 days, 67%of Goatseus Maximus and 69%for Moodeng (Moodeng), while PNUT dropped 72%. Chillguy) decreased 75%. For comparison, Bitcoin (BTC) increased 2% over the same period.
Notable reductions in Solana’s decentralized applications include a 47% decrease in trading volume of Orca and Phoenix and a 27% reduction in raydium activities for seven days at the end of February 10. Observed in other blockchains.
The blockchain is ranked on ONCHAIN volume and USD on the 7th. Source: Defillama
Solana’s 28% decrease in onchain volume is closely related to the decrease in competitive networks, including BNB chains, Ethereum, SUI and Polygon. This suggests that reducing Memecoin prices and decreased DEX activity is not exclusive to Solana.
In order to evaluate whether the sole trader has been weaker, the rate of permanent future funding acts as a major indicator to reflect the imbalance of leverage demand. In general, long positions (buyers) pay the financing fees for leverage, and negative rates signal pessimistic market prospects for SOL.
SOL futures 8 -hour financing ratio. Source: COINGLASS
According to the data, SOL’s financing rate has been maintained negatively since February 2, with a price of less than $ 220. This indicates that the demand for use buyers is weak. However, this is not a weak signal for the SOL because the investor seems to react to network activities and fees rather than betting on tokens or anticipating major negative events.
Solana’s total value lock (tvL) is steadily maintained at 46.5 million sole delivery and unchanged. In contrast, Ether Lee’s TVL has grown 9% in ETH (ETH) terms over the last 30 days, while BNB chains have reduced BNB reduction (BNB) deposits by 4%. This suggests that Solana maintains the basis for its competitors.
source: Asvanevik
Alex Svanevik, CEO of Blockchain Analytics Firm Nansen, mentioned that Solana surpassed Ethereum in several major measurements, including activity addresses, trading, volume and fees. He pointed out that the TVL remains the only area where Solana is delayed, but the gap has been so narrower over the past year.
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Despite the new participants, such as Aptos and SUI, Solana integrated its position as the second largest blockchain ecosystem. In addition, investors speculate that if the US Securities and Exchange Commission approves the solana spot Exchange Traded Fund (ETF), the SOL can attract additional institutional inflows. Reportedly, Bloomberg analysts are currently giving 70%probability of approval in 2025.
Considering Solana’s OnChain indicators compared to colleagues, there is no strong reason to expect the price of SOL to decrease entirely due to low network activities or current leverage purchases and shortages.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.