- Weekly trading volume on Solana’s DEXes surpassed $3 billion.
- SOL accumulation has lost traction amid increased profit-taking activity.
Trading volume on the decentralized exchanges (DEXes) housed within Layer 1 (L1) network Solana [SOL] has skyrocketed by a staggering 54% in the past week, surpassing $3 billion for the first time ever, data from DefiLlama showed.
Solana’s leading DEXes Orca and Raydium have witnessed their trading volumes grow 28% and 39% in the last seven days.
So far this month, Solana’s DEX trading volume has totaled $5 billion, ranking behind Ethereum [ETH] ($27 billion), Arbitrum [ARB] ($11 billion), and BNB Chain ($8 billion).
The recent surge in trading activity across Solana’s DEXes has resulted in an uptick in the network’s total value locked (TVL). At press time, Solana’s TVL was $1.06 billion, rallying by 8% in the last week and 51% in the last month.
The demand for Solana climbs
The increased trading activity on Solana’s DEXes is reflected in the consistent uptrend in the network’s demand. AMBCrypto’s assessment of Solana’s network activity in the last month revealed an uptick in the same.
According to data from Artemis, the daily count of unique wallet addresses sending on-chain transactions on Solana has increased by 93% in the last 30 days.
With a rise in daily active addresses on the network, the number of on-chain transactions completed daily has also rallied. In the last month, this has also witnessed a 22% growth.
SOL appears ready to shed some gains
The growth in demand for Solana comes amid a corresponding rise in the value of its native coin SOL. Per CoinMarketCap, the altcoin’s value has risen steadily by 108% in the last month. It traded at $56.07 at press time. 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 a rise in profit-taking activity.
SOL’s Moving average convergence divergence (MACD) observed on a 24-hour chart revealed a downward crossover of its MACD line with its trend line. This movement is referred to as a bearish crossover, as it typically suggests the re-emergence of the bears.
Likewise, key momentum indicators trending downward at press time signaled a decline in SOL accumulation.
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The coin’s Money Flow Index (MFI) was 53.74, poised to cross below the center line, while its Chaikin Money Flow (CMF) was 0.07, having witnessed a steady decline since the 11th of November.
This showed that traders have preferred to take liquidity out of the SOL market rather than supply it with the same.