Decrease in On-Chain Trading Volume
The on-chain trading volume has seen a significant decrease since mid-January, dropping from $173 billion to around $90 billion last week, as reported by DefiLlama.
Key Points:
- Solana’s weekly volumes experienced the largest decline during this period.
- Between Jan. 11 and 17, decentralized exchanges (DEX) hit a record high of $173 billion in weekly trading volume, with Solana leading the way with over $97.5 billion.
- The following week, DEXes maintained a volume of nearly $171 billion, with Binance Smart Chain (BSC) contributing significantly with almost $30 billion in weekly activity.
- In the last week of January, on-chain trading volumes dropped to almost $120 billion, marking a 30% decrease.
Solana’s Struggle
Solana continued to face challenges as it lost nearly $40 billion in weekly trading volume, while other blockchains remained stable.
Recent Developments:
- In the first week of February, DEXes recorded $107.4 billion in total volume, with Solana seeing a decrease of almost $10 billion.
- Weekly on-chain volumes fell below $100 billion for the first time in five weeks, reaching only $90 billion between Feb. 8 to Feb. 14.
- Despite losing its top spot in trading activity, Solana’s on-chain volume remains strong compared to BSC.
Overall Strength
Despite the weekly declines, decentralized exchanges still exhibit strong monthly volumes compared to centralized platforms.
Insights:
- The month-to-date volume ratio between decentralized and centralized platforms stands at 16.7%, showcasing the resilience of DEXes.
- While there was a slight pullback from last month’s peak, the percentage remains higher than last year’s peak, indicating steady growth in decentralized trading.
