3 months ago
Solana registered $102.4 cardinal successful trading measurement successful February, starring the marketplace contempt a 60% monthly decrease. The shrinking measurement relates to the cooling disconnected of the memecoin frenzy pursuing the LIBRA token fiasco.
Despite the falling volumes, Solana registered implicit $100 cardinal successful measurement for the 4th consecutive month. It amounted to implicit $260 cardinal monthly trading measurement successful January, besting its erstwhile grounds of $120.5 cardinal by implicit twice.
The full on-chain trading measurement decreased by astir $200 cardinal past month, with astir large blockchains registering losses, but Binance Smart Chain (BSC). BSC had a trading measurement of $81.1 billion, conscionable $600 cardinal abbreviated of January.
However, it was not capable to bushed Ethereum for 2nd place, with a trading measurement of $100 cardinal supra BSC past month.
Memecoin trading shrinks
According to Blockworks data, memecoins composed astir $206 cardinal successful Solana’s monthly trading measurement successful January, representing 79%.
However, the measurement fell sharply successful February, totaling $99.5 billion. Nevertheless, it inactive represented 97.1% of Solana’s monthly trading volume.
The numbers item however Solana’s trading enactment relies heavy connected memecoins, a assemblage heavy affected by the LIBRA token incident.
On Feb. 14, Javier Milei, President of Argentina, endorsed the memecoin, claiming it was a mode to money Argentinian ventures.
After his tweet, the token jumped successful terms and achieved a $4.5 cardinal marketplace cap. However, LIBRA’s terms crashed by 95% successful the pursuing 2 days.
In summation to the vexation tied to the debacle of a president-endorsed token, the occurrence raised questions regarding insider trading activity, arsenic a study by Nansen pointed retired that 2 wallets profited implicit $10 cardinal from buying the token aft Milei posted astir it.
Moreover, memecoins registered a astir 46% mean drawdown successful February, arsenic the crypto marketplace posted an mean retraction of 37% per Artemis data.
Notably, the extremity of the memecoin frenzy inactive hurts Solana successful March, arsenic Ethereum took the pb successful monthly trading measurement truthful acold aft trailing down for 5 months.
The station Solana leads monthly on-chain measurement contempt 60% diminution amid memecoin crash appeared archetypal connected CryptoSlate.
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