Solana-Based Decentralized Exchanges See Minimal 4% Decrease Despite 32% Fall in Weekly DeFi Trading Volume; Experts Anticipate Further Dip in SOL Value – ZyCrypto

Amidst a sizeable 32% downturn in weekly trading volumes across decentralized exchanges (DEXs) on smart contract platforms, Solana (SOL) DEXs have shown resilience, experiencing only an 8.6% drop, data from DefiLlama reveals.

Notwithstanding the broad downturn in total trading volumes across diverse smart contract platforms, Solana-based DEXs such as Saber and Raydium stand out with an 8.6% reduction. Both Saber and Raydium have shown remarkable performances, recording increases of 45% and 32% in trading volumes respectively.

Conversely, Optimism recorded a sharp volume contraction of over 60%, leading the decline among the top 10 chains by total value locked (TVL). Both Polygon and Arbitrum also faced significant volume drops, nearly 50% each.

January data underscore Solana’s burgeoning influence in the decentralized exchange space. It began the month with a 13% market dominance and ascended to a 19.5% share, overtaking Arbitrum, while Ethereum experienced a slight decrease in its dominance, at 31.5%.

Comparing year-on-year growth, Solana’s rising prominence is significant. Ethereum once commanded nearly a 67% share of the DEX market, with Solana merely at 2.4%. Fast forward, and Solana has vastly increased its dominance to 19.5% by the third week of December 2023, closely following Ethereum’s 34%.

Despite a dip in the following weeks, Solana’s DEXs saw a rebound in trading volumes from January 13th to 19th.

Concerns Over Potential Downswing in Solana’s Pricing

Recent analysis by a trader known as Bluntz, reputed under the pseudonym X handle, points to a possible downturn in Solana’s (SOL) price. He refers to what’s known as a “B wave triangle” from Elliott Wave Theory, indicating that SOL may be prime for a significant move after consolidating.

Bluntz considers any decline in SOL’s valuation an opportunity to buy in anticipation of a future rally, specifically if pricing hits the “low 70s.” Noting SOL’s fall below the resistance level at $87, he speculates on potential bullish movement. Meanwhile, speculation from other Twitter analysts Ali and JAKE diverges; Ali predicts a surge to $163 should SOL break the $110 mark, while JAKE, from confidence in the Solana ecosystem, ambitiously projects a long-term target of $750 per SOL.