There is a decline in DeFi activity in Solana.
Solana [SOL] had a significant decline in decentralized finance (DeFi) activity in February. The total value locked (TVL) on the network, according to DeFiLlama, plateaued for the majority of the month before falling below $250 million. The cumulative volume over the last seven days has been slightly over $280 million, which indicates a reduction of about 20% week-to-week in the total volume of all decentralized exchanges (DEXes) on the Solana chain.
The Evolution of BONK Token
Half of the 100 trillion token supply was airdropped for free to the community, including NFT producers and constructors, which boosted Solana’s DeFi activity. This marketing initiative significantly increased interest in the meme coin and rekindled Solana’s activity. However, Solana’s DeFi activity was also hampered by the decline in the value of the BONK coin. The number of daily active users and transactions is continuously declining, according to data from Dune Analytics. The drop in volume for Solana-based DEXs like Orca can be ascribed to the decline in BONK’s value.
The NFTs of Solana are a Silver Lining
As BONK’s value and buzz declined, so did the negative sentiment for SOL, according to Santiment’s weighted sentiment index. Despite this, Solana’s NFT performance gave the ecosystem some cause for optimism. In February, fresh debuts routinely caused the daily trading volume to surpass $1 million. As of the time of publication, the coin was up 3.46% and continuing upward, having surpassed the support level of $20.85 on February 10th. The On Balance Volume (OBVincreasing )’s trend points to a likely rise in buying activity in the coming months. Nevertheless, the decline was not large enough to warrant making negative forecasts.