Solana DEX Traders Continue to Decline Amid Rise in Meme Coin Scams

Retail traders on decentralized exchanges-based exchanges shift their attention elsewhere in the crypto economy, whereby the month of August expand a year-long decrease as the concerns remain about scams related to meme coins.

The daily DEX traders number have plunged to only 900,000 in August at the start of the year of a peak of 4.8 million, according to one Dune analysis dashboard. Daily DEX transactions are also almost halved, from a peak of July 45 million to 28.8 million.

One expert Decrypt Spoke with has the dip linked to predatory mint carpet tracts and the growing dominance of Ethereum.

“The collapse of extractive meme coins, which caused speculative retail trade, is a primary factor in the sharp decrease in daily DEX traders,” said Ryan Lee, chief analyst at Bitget.

The dependence on Solana of “Volatile Meme Coin activity can undermine sustainable growth,” he said.

Decrypt has contacted various Solana -based DEXs. A representative of the Solana Foundation did not immediately respond to a request for comments.

In August, Hackers hijacked the Instagram accounts of stars, including Adele, Future, Tyla and even Michael Jackson’s estate to promote FreeBandzA fake Solana token that fell in value by 98%.

Likewise the fake CR7 -TokenWrongly bound to Cristiano Ronaldo, shook in a few minutes before insiders settled the liquidity to a market capitalization of $ 143 million.

The most recent was a fake crypto that imitated The official Yzy Meme Coin of Kanye West. West clarified later on Wednesday that his Instagram account was hacked, which resulted in a value of 81% for his official token.

Solana’s Meme Coin Frenzy, who started at the end of last year, made way for fast pumps and dump schemes that were designed to extract value from ignorant investors.

With the purchase of the stores and the whale dominance, the “retail chain” label is weakened by Solana, “it may prevent long-term growth unless it diversifies over meme coins to compete with the wider defi-ecosystem of Ethereum,” Lee said.

Although Solana’s share in Dex volume fell sharply from 76% in January to only 8% in June, “Mainly powered by rotation in BNB Dexs,” it has since returned to around 27%, Max Shannon, senior employee at Bitwise Europe, said Decodeer.

“The network still has the best capital efficiency on a scale, supported by a well -aligned route map and a clear view to further improve the transit and reduce costs.”

Solana position those basic principles to ‘remain more competitive’ against his primary rivals in the long term, he said. “In general, I continue to trust in health and success in the long term of the Solana network and the active.

Solana has risen 1.8% on the day to $ 215 and more than 15% higher a week.