On-chain data reveals a 400% spike in trading activity on Solana-powered decentralized exchanges (DEXs) over the past week. However, this surge might not reflect true user engagement.
The increase is due to the popularity of a Solana-based meme coin creation platform called pump.fun, which allows users to launch joke coins for free. This platform has dominated activity on Solana DEXs, accounting for 70% of all transactions on August 18.
Despite the surge in DEX trading, user activity on the Solana blockchain has declined. Daily active addresses have dropped by 20% over the past week, leading to a 6% decrease in daily transactions.
This decline impacts the network's fees and revenue, which have dropped by 34% during the reviewed period.
Currently, Solana's native coin trades at $147.3. The MACD indicator shows potential for a short-term rally if the MACD line crosses above the signal line.
If SOL completes this crossover and demand rises, the price could reach $148.27. However, if bearish momentum takes over, the price could drop to $133.64.
