The digital asset community took notice when Solana, a well-known Layer 1 blockchain network, surpassed a significant milestone for the second consecutive month. SOL$199, the protocol’s native token, experienced a bull run on the last day, and the whole decentralized exchange (DEX) trading volume on Solana once again surpassed $100 billion.
Solana recorded $100.782 billion in DEX trade volume in December, whilst Ethereum saw only about $77 billion. The top five blockchains with the greatest DEX trade volume were Base ($44.5 billion), BSC ($41.33 billion), Arbitrum ($30.39 billion), SOL, and ETH ($3,522).
Solana’s DEX Trading Surge
The DEX trading volume on Solana was $52.49 billion in October and $129 billion in November. However, the blockchain has surpassed Ethereum, which had a DEX trading volume of $41.4 billion in October and $70.6 billion in November, to take the top spot among networks with the biggest DEX trading volume over the last three months.
Additionally, Solana had 4.29 million active addresses during the last day, significantly more than Ethereum’s 475K. With a TVL of $68.516 billion, much greater than Solana’s $8.471 billion, Ethereum remains the leader in terms of total value locked.
Notably, the increase in DEX trading volume on Solana refutes the widespread misconception that SOL’s popularity stems solely from the thousands of meme coins produced on the blockchain after the Pump—launch. With a staggering $3.5 billion transacted in the last day, the market capitalization of meme coins on the Solana blockchain is an astounding $16.22 billion.
Solana Struggles Near $200
SOL rebounded from a daily low of $184 to a daily high of $198.70. At the time of writing, the altcoin is trading at $197.69 as the bulls and the bears fight for dominance. The $200 price level is a crucial zone for SOL. With the skyrocketing DEX volume on Solana, the altcoin might reclaim $200. In the last seven days, the SOL token has dipped 12.11% while crashing 19.73% in the previous 30 days. Moreover, the cryptocurrency is still trading at a 25.32% discount to its all-time high of $263.83, seen over a month ago.
The signal line (red) on the Solana weekly chart is breaking above the MACD line (blue), indicating that a bearish divergence is imminent, as seen in the figure above. If SOL does not recover $200 and advances toward $210, it is a bearish indication. If bears take control, the MACD histogram may turn re,d and SOL mayretestt $160.
Also Read: Solana ETF Approval Sparks 20X Growth for Tokens
Final Thought
To sum up, Solana has become a significant force in the decentralized exchange (DEX) industry, outpacing Ethereum in trade volume for two months. With astounding numbers like the $100.782 billion DEX transaction volume in December and the millions of active addresses, Solana has debunked the myth that meme currencies are the only ones driving its growth.
However, Solana’s native token, SOL, is currently experiencing severe price volatility and is finding it difficult to regain the vital $200 mark, even though DEX activity has increased. The technical indications indicate a possible negative trend if SOL cannot restore its upward momentum. As a result, even while Solana’s increase in DEX volume demonstrates its expanding power, SOL’s price movement is still unpredictable, underscoring the difficulties it has in sustaining stability and growth.
