Key points:
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Solana’s DEX volume exceeded Ethereum, but overall activity is still well below January’s level.
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Hyperliquid’s dominance in permanent futures trading has weakened investors’ confidence in Solana’s long-term lead.
Solana’s local token SOL (solIt has dropped 15% since failing to recover the $168 level on June 12. This bearish movement reduces network activity and reduces the demand for memory.
However, recently, Solana regained a second position in the Decentralized Exchange (DEX) volume, which raised questions among traders about the SOL’s recovery of the $180 level in the short term.
Solana’s DEX activity reached $64.1 billion in 30 days, surpassing Ethereum’s $61.4 billion, according to Defilama. Although the BNB chain maintained its highest level of $159.6 billion during the same period, Solana has market share throughout June.
The main contributors to this growth include Raydium, which is $19.1 billion, followed by pumps. Nevertheless, overall DEX activity for Solana was 91% below January’s level.
The Memecoin industry appeal continues to disappear, with most tokens losing 25% or more in the past 16 days. GIGA fell 42%, explosive protein 35%, Fartcoin and Pnut were both 31%, while Bonk and Wif fell 25%, respectively. These losses have suppressed enthusiasm for Solana’s growing DEX market share.
Another problem for SOL investors is The rise of super liquidityThis has become the main blockchain for permanent transactions. This shift reduces interest in Ethereum 2s and independent decentralized applications (DAPPs) on Solana and BNB chains.
According to Defilama, Super Liquid’s 30-day trading volume is 84% higher than the total of its five biggest competitors. More importantly, its success has sparked speculation that other projects may launch their own standalone blockchains, which may include DAPPs based primarily on Solana, such as Pump.Fun.
This fear weakens traders’ belief that Sorana can be the main player. This loss of confidence is visible in the derivatives market, and in the derivatives market, the demand for the medium- and long-term leverage position of SOL has decreased.
In neutral markets, permanent futures usually show annualization Funding rate 5% to 12% of the long position. When this speed goes negative, it indicates bearish sentiment as the shorts are paying to maintain their trade. There is no sustained optimism about SOL over the past 30 days.
The biggest potential catalyst for SOL is still Possible approvals The U.S. Securities and Exchange Commission’s Solana Spot Exchange Trading Fund (ETF), is expected to make a decision in October. Before this, Bulls also relied on the technological advantages of the network to support price recovery.
Related: U.S. crypto ETF approval odds surge to “90% or higher” – Bloomberg analysts
From the drift protocol, Davao noted that Solana’s robust grassroots support “asset availability,” meaning that the token can be used as collateral. He also highlighted the lack of a “quarantine matching engine”, which helps protect DEX users from reordering or prioritization of transactions.
Although it is related to the launch of Memecoins and Memecoins, Solana’s ecosystem has a wider use case. Although superflow may be an outlier, other emerging blockchains (such as Berachain) have failed to maintain meaningful deposit levels. Given Solana’s low fees and high scalability, a return to the $180 mark could occur even before the October ETF decision.
This article is for general information purposes and is not intended to be considered legal or investment advice. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent Cointelegraph’s views and opinions.
