Despite the increase in decentralized exchange (DEX) volumes on the Solana platform, interest in the SOL token continues to wane amidst declining network activity.
Increase in DEX Volume on Solana
Solana has regained the second position in decentralized exchange (DEX) volumes, reaching $64.1 billion over 30 days, surpassing Ethereum's $61.4 billion. However, these figures remain 91% below January levels. Key contributors to this growth include Raydium with $19.1 billion in volume, Pump.fun with $14.2 billion, and Orca at $13.9 billion.
Decline in Memecoin Popularity
The memecoin sector is also experiencing a downturn, with most tokens losing 25% or more over the last 16 days. Tokens like Giga, Popcat, and Fartcoin have seen significant drops, which has weakened interest in Solana’s growing DEX market share.
Prospects for SOL Token and Impact of Hyperliquid
The rise of Hyperliquid in perpetual trading has considerably increased its dominance, reducing interest in Solana's DApps and raising concerns among investors regarding the SOL token's foundation. Potential approval of a Solana ETF by the SEC could be a key factor in aiding price recovery.
Thus, while DEX volumes on Solana are increasing, multiple factors, including the decline in memecoin popularity and competitive pressure from Hyperliquid, cast doubt on the future of the SOL token.
