Solana has emerged as the most affected blockchain in the recent downturn of decentralized exchange (DEX) volumes, experiencing a staggering 60% decline. Additionally, transaction fees on the network have dropped by 95%, signaling a slowdown in on-chain activity following the fading memecoin frenzy.
DEX Volumes See Massive Drop
Decentralized exchange volumes peaked at $457.5 billion in January but have since plummeted to nearly $100 billion by March. According to Coinbase analysts, Solana has been the hardest-hit network by this downturn.
Major Solana-based DEX platforms such as Raydium, Meteora, and Orca saw significant volume spikes in January, largely driven by memecoin speculation, including tokens like TRUMP and MELANIA. However, as interest in memecoins waned, trading activity on Solana’s DEXs dropped sharply.
Solana Transaction Fees at Record Lows
The decline in DEX activity has also led to a drastic reduction in transaction fees on Solana. In January, transaction fees reached 141,000 SOL, but by March, they had fallen to just 7,000 SOL, marking a 95% decrease.
Coinbase analysts noted that Solana’s transaction fees have hit their lowest level since September 2024. Additionally, memecoin trading platforms such as Pump.fun have seen trading volumes return to levels last recorded in October 2024.
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SOL Price Struggles Amid Market Uncertainty
With memecoin hype cooling off, SOL’s price has also taken a hit. After reaching a high of $295 in mid-January, the price fell to $112 in February and is currently trading around $134. This means SOL remains 55% below its all-time high.
Ethereum-based DEXs, on the other hand, have shown more resilience, though the overall market continues to experience uncertainty.
Macro Factors and Fed Expectations
Analysts at The Bit Journal point to macroeconomic uncertainties as a key factor behind the market contraction. Speculation surrounding Trump’s trade tariffs has led to increased investor caution, driving capital away from riskier assets like cryptocurrencies.
Meanwhile, an upcoming Federal Reserve (Fed) meeting next week could mark a turning point for financial markets. Analysts suggest that if the Fed decides to pause its quantitative tightening (QT) policies, it could inject fresh momentum into the crypto market. Any major policy shifts could determine whether the current market slowdown is temporary or the start of a longer bearish phase.
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