Connect with us
Active Currencies 14791
Market Cap $2,469,545,528,576.10
Bitcoin Share 51.84%
24h Market Cap Change $-2.13

Solana DEX volume tumbles: Could SOL be in trouble?

2min Read

Contrasting its record volume in April, the downturn as May ends suggests a potential change for SOL.

Solana news

Share this article


  • The significant decline hinted at a cooling interest in Solana-based memecoins.
  • SOL’s price might test the lower support levels around $145.90 if interest continues to decline.

The daily trading volume of decentralized exchanges on Solana [SOL] has fallen. As of the 26th of May, AMBCrypto’s analysis of Artemis’ dashboard showed that the volume was $984 million.

Three days before that, the figure was over $1.5 billion. This decline was in contrast to the blockchain’s record in April. At that time, Solana’s DEX volume hit a record high of $60 billion, summed up every month.

Considering the recent fall and May nearing its end, it is possible that the total volume for the month could be less. The previous surge could be linked to the memecoin frenzy on the network.

No memecoins, no party

Therefore, the decline could mean that interaction with memecoins launched on Solana was no longer as high as it was. Besides that, the development seemed to put SOL, the native token of the ecosystem on the backfoot.

At press time, SOL’s price was $161.49. A few days back, the value got close to $190. Should the DEX volume continue to slide, SOL might also follow.

This is because demand for the cryptocurrency is relatively tied to memecoin trading. For those unfamiliar, while some memecoin might allow exchange with USDC, most need SOL.

Trading volume on Solana decentralized exchanges fall

Source: Artemis

As such, if the purchase of memecoins decreases, bids for SOL would most likely drop. Apart from this, other metrics can also predict the next direction for Solana’s price, and AMBCrypto looked at them.

SOL has become weak

One other indicator we analyzed was Solana’s Open Interest (OI). According to data from Santiment, the OI was down to $1.90 billion. As of the 20th of May, this value was almost $2.20 billion.

OI is the value of all open positions in a contract. If it increases, it means that net positions are increasing and more money is coming into the market. In this instance, the increase serves as a bullish signal.

A good example was shown in the chart below as SOL’s price rallied to $188.45 as the OI jumped. However, this decrease meant that liquidity taken out of SOL contracts increased.

Solana's open interest falls, suggesting a possible decrease in SOL's value

Source: Santiment

Thus, the strength for a possible uptrend was waning. If this persists, SOL’s price might continue to decrease, and a move to $145.90 could be possible.

In addition, AMBCrypto reported that Solana has started lagging behind other blockchains in terms of activity. Some of the projects giving Solana a run for its money were Aptos [APT] and Sui [SUI].

Realistic or not, here’s APT’s market cap in SOL terms

However, it remains uncertain if these projects would be able to stand the test of time by outpacing Solana transactions consistently.

If this happens, Solana might shed a part of its market value as well as its price. If not, it could get back to winning ways.


Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.