Solana Trading Volumes Plummet: A $40B Drop in Weeks

On-chain weekly trading volumes have been declining since mid-January, with a significant drop in activity on the Solana network. According to DefiLlama data, weekly trading volumes have fallen from a peak of $173 billion in mid-January to around $90 billion last week.

Solana was the primary driver behind the initial surge in trading volumes, registering over $97.5 billion in on-chain trading activity between January 11 and 17. However, the network has since struggled, with weekly trading volumes plummeting by nearly $40 billion in late January and continuing to decline in early February.

In the first week of February, weekly on-chain volumes fell below $100 billion for the first time in five weeks, recording only $90 billion between February 8 and February 14. This marked the first time since early October that Solana did not lead weekly trading activity, with Binance Smart Chain (BSC) traders moving nearly $30 billion compared to Solana’s $26.2 billion.

Despite the weekly setbacks, the monthly volume of decentralized exchanges remains relatively strong compared to their centralized counterparts. As of press time, the ratio of month-to-date volume traded on decentralized and centralized platforms is 16.7%, based on on-chain data. Although this figure represents a 3.3% pullback from last month’s peak of 20%, it is still above last year’s peak of 13.9%, which was registered in October.