Journalist
Posted:
- Weekly trading volume on Solana’s DEXs exceeded $3 billion.
- SOL accumulation has lost its grip due to increased profit-taking activity.
Trading volume on the decentralized exchanges (DEXs) within Layer 1 (L1) network Solana [SOL] rose as much as 54% in the past week, surpassing $3 billion for the first time ever, data from DefiLlama showed.
Solana’s leading DEXs Orca and Raydium have witnessed a growth in their trading volumes by 28% and 39% in the last seven days.
So far this month, Solana’s DEX trading volume has reached $5 billion, which ranks behind Ethereum [ETH] ($27 billion), Arbitrum [ARB] ($11 billion) and BNB Chain ($8 billion).
Source: DefiLlama
The recent increase in trading activity on Solana’s DEXes has resulted in an increase in the network’s total value locked (TVL). At the time of writing, Solana’s TVL was $1.06 billion, up 8% in the past week and 51% in the past month.
Demand for Solana is increasing
The increased trading activity on Solana’s DEXes is reflected in the consistent upward trend in network demand. AMBCrypto’s review of Solana’s network activity over the past month revealed an increase in this.
According to data from Artemisthe daily number of unique wallet addresses sending on-chain transactions on Solana has increased by 93% over the past 30 days.
With an increase in the number of daily active addresses on the network, the number of daily completed on-chain transactions has also increased. This was also a growth of 22% last month.
Source: Artemis
SOL seems poised to lose some gains
The growth in demand for Solana comes amid a corresponding increase in the value of the indigenous currency SOL. Per CoinMarketCapthe value of the altcoin has risen steadily by 108% over the past month. It was trading at $56.07 at the time of writing. This price level was last observed in May 2022.
However, the coin has not been spared from the recent price consolidation that has plagued the general market due to an increase in profit-taking activity.
The moving average convergence divergence (MACD) of SOL, observed on a 24-hour chart, showed a downward crossing between the MACD line and the trend line. This move is called a bearish crossover because it usually suggests the re-emergence of the bears.
Likewise, key momentum indicators, which were trending lower at the time of writing, indicated a decline in SOL accumulation.
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The coin’s Money Flow Index (MFI) was at 53.74, on the verge of breaking below the midline, while the Chaikin Money Flow (CMF) was at 0.07, after a steady decline since November 11.
This showed that traders preferred to extract liquidity from the SOL market rather than supply it.
Source: SOL/USDT on TradingView