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- Solana’s weekly DEX trading volume fell roughly 82% within two weeks.
- Slowing meme coin launches appear to be reducing speculative trading activity.
- A key long-term holder cohort began trimming SOL holdings during the same period.
Solana (SOL) is facing renewed scrutiny after two notable on-chain developments emerged within the same two-week period. Network trading activity has dropped sharply, while a significant group of long-term holders has begun reducing its positions. Although the two trends do not necessarily prove cause and effect, their timing is drawing attention from investors monitoring Solana’s market health.
Solana DEX Activity Suffers Sharp Decline
Recent on-chain data shows that decentralized exchange (DEX) activity on Solana has fallen dramatically since mid-May. Weekly trading volume across the network dropped from more than $100 billion to under $20 billion in just two weeks, representing an approximately 82% decline.
The largest contributor to the downturn was Meteora, one of Solana’s most active DEX platforms. The protocol experienced the steepest reduction in trading activity, accounting for a large portion of the network-wide contraction.
The decline suggests that speculative trading activity, which has played a major role in Solana’s growth over the past year, has cooled significantly. It also extends a broader trend, with overall DEX volumes remaining well below the highs recorded earlier in the year.
Meme Coin Slowdown Hits the Ecosystem
Much of Solana’s recent trading boom was fueled by meme coin launches and the intense trading activity that followed. New token launches created constant demand from traders seeking quick opportunities, generating substantial volume across decentralized exchanges.
However, data indicates that meme coin creation activity has slowed considerably in recent months. With fewer new projects entering the market, traders have had fewer speculative opportunities to pursue.
As launch activity weakened, trading volumes naturally followed. Platforms that benefited heavily from meme coin-related transactions experienced some of the largest declines, highlighting how dependent portions of Solana’s ecosystem became on speculative market cycles.
Long-Term Holders Begin Trimming Positions
At the same time that trading activity was falling, a key holder group started reducing its SOL holdings.
Glassnode’s HODL Waves data shows that wallets holding coins for one to two years saw their share of the total SOL supply decline between late May and early June. This cohort largely accumulated tokens during Solana’s strong growth phase in 2024 and 2025.
The overlap between declining network activity and the reduction in holdings is notable. While the data does not confirm that lower DEX volume triggered the selling, both signals emerged almost simultaneously.
The coming weeks may prove important for Solana’s outlook. Investors will be watching whether network activity stabilizes and whether meme coin-related trading returns to support volume growth.
For now, the combination of shrinking DEX activity and long-term holders reducing exposure presents a cautious signal. Whether these trends represent a temporary cooling period or the beginning of a broader shift in sentiment remains one of the key questions facing Solana heading into the next phase of the market cycle.
Also Read: Arthur Hayes Says Hyperliquid Could Flip Solana Before This Bull Run Ends
Solana remains one of the largest blockchain ecosystems, but recent on-chain metrics suggest momentum has weakened. An 82% decline in DEX volume and a simultaneous reduction in holdings from experienced investors are signals worth monitoring. While neither metric alone confirms a bearish outlook, together they paint a picture of an ecosystem undergoing a meaningful slowdown that could shape SOL’s near-term trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
