Solana (SOL) decentralized exchanges (DEXs) maintained steadfastness despite a significant 32% drop in weekly cryptocurrency trading volume across all DEXs on smart contract platforms. According to data sourced from DefiLlama, Solana’s DEXs incurred a mere 8.6% loss during this challenging period.
Despite widespread declines in total trading volume across various smart contract platforms, Solana’s DEXs, including Saber and Raydium, emerged as outliers with a relatively small 8.6% reduction. Saber and Raydium even experienced positive growth, boasting 45% and 32% increases in trading volume, respectively.
On the other hand, Optimism faced a substantial loss in total trading volume exceeding 60%, ranking as the largest among the top 10 chains by total value locked (TVL). Polygon and Arbitrum also witnessed significant declines in volume, both around 50%.
Solana’s increasing dominance in the decentralized exchanges arena is evident in the data from January. Starting the month as the third-largest player with slightly over 13% dominance, Solana surpassed Arbitrum to claim a 19.5% market share, while Ethereum maintained a slightly reduced dominance at 31.5%.
This achievement for Solana marks a notable growth considering the narrow gap in dominance just a year ago, with Ethereum holding almost 67% of the decentralized exchange market share compared to Solana’s 2.4%.
The rise in Solana’s trading volume began in October 2023, when its dominance was at a mere 2.4%. The gradual ascent culminated in a peak dominance of 19.5% during the third week of December 2023, closely trailing Ethereum’s 34%.
While Solana’s DEXs faced a subsequent loss in the weeks following, there was a rebound in trading volume between January 13th and 19th.
Analyst Warns of Potential Solana Price Decline
In a recent analysis, a trader known by the X handle Bluntz has raised concerns about the future trajectory of Solana’s (SOL) price. Bluntz points to the emergence of a specific pattern, identified as the “B wave triangle,” within the Elliott Wave Theory during the correction phase.
$SOL also looking like all these weeks of sideways was probably some kind of B wave triangle.
ill be interested again in the low $70s pic.twitter.com/0n3rI6rUaO
— Bluntz (@Bluntz_Capital) January 22, 2024
The “B wave triangle” is characterized by a series of lower highs and higher lows, suggesting a consolidation period before a significant price movement. Bluntz views the potential decrease in SOL’s price as a buy-the-dip opportunity, anticipating “max bidding” if the price retraces to the “low 70s.”
Furthermore, Bluntz observed SOL’s drop below the previously noted resistance level of $87, prompting speculation about bullish activity. Two other Twitter users, Ali and JAKE, have presented differing predictions for SOL. Ali envisions a potential rally towards $163 if SOL surpasses the $110 resistance, while JAKE, expressing strong confidence in Solana’s ecosystem, sets an ambitious target of $750 per coin.
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