Solana Struggles Under $150 Amid Memecoin Scandals Even as DEXs Outperform Ethereum
Solana’s decentralized exchange (DEX) trading volumes continue to challenge Ethereum’s ecosystem despite recent memecoin market turbulence and significant price volatility, according to a March 5 report by asset manager VanEck.
Solana DEXs’ Record-Breaking Performance Amid Price Pressure
Solana’s DEX volume share reached in February at 43%, momentarily higher than the combined trade volumes of Ethereum and its layer-2 scaling systems. Though this proportion dropped to about 30% in March, compared to Ethereum’s 40%, Solana’s endurance in the distributed finance (DeFi) scene even as its price encounters technological challenges shows.
“Despite the Memecoin Meltdown, Solana DEX volumes are still holding their own — roughly matching the entire ETH ecosystem (L1 + L2s),” observed Matthew Sigel, VanEck’s head of research.
Weathering Memecoin Volatility
Given major obstacles in the memecoin sector—which generates almost 80% of the network’s income—Solana’s ecosystem resiliency is impressive. Following many well-publicized memecoin failures in February, market mood turned negative:
- Within hours of debut, Libra, a memecoin apparently approved by Argentine President Javier Milei, wiped about $4.4 billion in market value.
- Essential for on-chain trade, stablecoin transfers dropped 80% from January levels. Traders lost an estimated $2 billion across 800,000 wallets on Official Trump (Trump).
- New token launches on the well-known Pump.fun platform dropped around 80% starting in January.
Solana Ecosystem Growth Despite Challenges
Solana SOL/USD has shown remarkable growth figures in 2025 despite present pricing difficulties:
- Token price year-to—date: 191% gain despite recent drop
- 700% increase in on-chain earnings (not including MEV).
- 291% increase in steadycoin availability
VanEck claims these numbers place Solana as “the standout performer in the current crypto market cycle”.
Other Strategic Developments
Among this expansion, well-known East Asian DeFi company NEOPin revealed intentions to switch from the Klaytn blockchain to Solana. If approved through community governance voting set for March 11–18, the platform’s “Project Titan” endeavor seeks to combine AI-driven agents with DeFi operations, hence perhaps boosting Solana’s environment.
Solana co-founder Anatoly Yakovenko recently refuted claims that Solana representatives pushed for the network’s inclusion on a proposed US government crypto reserve. Yakovenko voiced doubts about government intervention in crypto assets, implying it might compromise ideas of decentralization.
SOL/USD Technical Analysis: SOL Price Under Pressure
SOL has encountered significant technical difficulties recently, struggling to sustain momentum above key resistance levels:
- Price declined below critical support at $165 and $150 levels
- Currently trading below the 100-hourly simple moving average
- A breakdown from a short-term rising channel with support at $144 on the hourly chart
- Formation of a recent swing low at $132 before modest recovery
- Major resistance zones established at $148 and $155 (the 50% Fibonacci retracement level)
The hourly MACD indicator shows diminishing bearish momentum, while the RSI remains below the 50 level, suggesting continued downward pressure. SOL faces immediate support at $136, with $132 representing a crucial level that, if broken, could trigger further decline toward $125 and potentially $120.
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