Categories: MarketsMenafn

Solana DEX Trading Volumes are Down 60% From Their Peak

Solana-based decentralized exchanges (DEXs) have seen their trading volumesp lunge over the last few weeks, even amid a growing number of monthly active addresses on the network that recently topped 160 million.

According to data from Artemis, Solana-based DEXs saw their trading volume peak at $7.1 billion in a single day in mid-November, when the price of the cryptocurrency was seeing a massive rally amid a wider cryptocurrency market rise fueled by Republican candidate Donald Trump winning the US presidential elections.

The data source shows that trading volumes have since plunged, with $2.8 billion changing hands on the first of December on Solana-based DEXs. The figure is slightly above the $2.5 billion seen ahead of the US presidential elections.

Solana DEX volumes. Source: Artemis

Given the plunge, fees collected on the network also plunged from a $13.6 million high on November 21 to $4.5 million in the first day of December, with the same occurring for the revenue generated by these platforms.

The decline comes even after over $2 billion from other blockchains flowed onto Solana, with the lion’s share of these funds moving in from the Ethereum network.

Solana DEX volumes drop after Pump.fun controversy

The trading volume on these decentralized exchanges dropped after leading memecoin launch platform Pump.fun dropped its livestreaming functionality over significant moderation issues that allowed extreme activities to run on the website.

The platform pointed to its rapid growth as a key factor in the challenges it faced, which included users using tactics such as self-harm and violence in a bid to pump the value of the tokens they launched.

Toksns launched on the platform were launched on decentralized exchange Raydium after reaching a specific threshold, and while most tokens failed to reach that threshold, those that did enjoyed significant popularity.

Volumes also dropped amid a Solana ecosystem cooldown that saw the price of its native token SOL plunge 6.58% over the past week from $243.5 to now stand around $228.

Jerry Rolon

After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

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