Solana has recently overtaken Ethereum in decentralized exchange (DEX) volume, achieving $64.1 billion over 30 days as opposed to Ethereum’s $61.4 billion. However, despite this increase in market share, Solana's native token, SOL, has seen a 15% decline, failing to reclaim the $168 level. This downturn is attributed to reduced network activity and waning interest in memecoins. The memecoin sector has experienced significant declines, contributing to investor apprehension. Furthermore, the rise of Hyperliquid as a leading blockchain for perpetual trading has diminished confidence in Solana's long-term prospects, impacting demand for SOL. Although the network exhibits potential with its robust base layer and high scalability, overall DEX activity remains 91% lower than January’s levels. The key sentiment in the derivatives market depicts a lack of optimism, with diminished demand for leveraged long positions in SOL. The potential launch of a Solana spot ETF by the US SEC, with a decision expected in October, could serve as a catalyst for price recovery, contingent on Solana's technical strengths.

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