Solana-based decentralized exchange (DEX) traders have dramatically decreased, with daily trader counts plummeting from 4.8 million at the start of the year to just 900,000 by August, primarily due to concerns over meme coin scams. The volume of daily DEX transactions has also nearly halved from a peak of 45 million to 28.8 million. Experts link this drop to predatory meme coin rug pulls and the increasing dominance of Ethereum. Notably, Instagram accounts of various celebrities were hijacked to promote fake Solana tokens, contributing to investor losses. A class action lawsuit against the DEX Meteora alleges a $69 million scheme tied to its meme coin launch. As retail participation declines and investor trust wanes, industry experts warn that Solana's reliance on volatile meme coins may hinder sustainable growth unless it diversifies its offerings in the decentralized finance ecosystem. Overall, confidence remains in Solana’s future competitiveness, with its DEX volume share rebounding to 27% despite challenges as it seeks to improve scalability and reduce costs.

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