Solana [SOL] Transactions Soar as DEX Volume Drops: Price Prediction 2023-2024
• Solana [SOL] has seen a spike in the number of transactions being made on its network, which resulted in an increase in its TVL over the past month.
• However, DEX volume and active addresses on the network have declined, as evidenced by data from DeFiLlama and Dapp Radar.
• The crypto community had a pessimistic outlook towards the future of Solana at press time due to decreasing social mentions and engagements for SOL, along with a declining sentiment score.
High Transaction Volumes on Solana Network
Solana [SOL] has been witnessing high numbers of transactions being made on its network, resulting in an impressive 22.75% increase in its Total Value Locked (TVL) over the past month according to data from Artemis and DeFiLlama.
Declining Interest In DEXs
Despite this growth, there has been a decrease in interest in its decentralized exchanges (DEXs), as evidenced by data from Dapp Radar showing a 22.5% drop in unique active wallets on Saber and a 33.97% decrease for Radium. This could be linked to underperformance of these DeFi protocols compared to others available on the market.
Negative Social Sentiment
The crypto community also had a negative outlook towards the future of Solana at press time due to decreasing social mentions and engagements for SOL, along with a declining sentiment score according to LunarCrush’s data. This impacted the price of SOL as well, which decreased materially over the last month coupled with reduced token volumes (1.13 billion to 271 million).
Growth Potential From NFT Market
Despite this pessimism around Solana’s future prospects, one aspect that could turn things around is its non-fungible token (NFT) market which saw an increase in trade activity recently according to Santiment’s data. If this trend continues it could improve user interest in the protocol and its native token again going forward.
Overall it would seem that despite seeing high transaction levels on its network recently Solana is still struggling with lagging interest from users when it comes to DEXs available on the platform coupled with waning sentiment from within the crypto community at present moment – but there may still be hope if NFT trading activity continues to pick up going forward .