Solana registered a trading volume of $102.4 billion in February, leading the market despite a 60% monthly decline. The reduced volume is associated with the memo coin frenzy cooling following the Libra token fiasco.
Despite the decline in volume, Solana has registered more than $100 billion for the fourth consecutive month. In January, it was equivalent to monthly trading volumes of over $260 billion per month, surpassing the previous $125 billion record twice.
Total total chain trading volume fell nearly $200 million last month, with most major blockchains registering losses excluding Binance Smart Chain (BSC). BSC's trading volume was $81.1 billion, a mere $600 million shortfall in January.
However, beating Ethereum in second place is not enough, with trading volumes exceeding BSC last month exceeding $100 million.
Memecoin Trading will shrink
According to BlockWorks dataMemecoins made up nearly $200 billion in Solana's monthly trading volume in January, accounting for 79%.
However, the volume in February fell sharply, totaling $99.5 billion. Nonetheless, it still represents 97.1% of Solana's monthly trading volume.
The numbers highlight that Solana's trading activities rely heavily on Memecoins, the sector affected by the Libra token incident.
On February 14th, Argentine President Javier Mairei supported Memocoin, claiming it was a way to fund Argentine ventures.
After his tweet, the token jumped at the price, achieving a market capitalization of $4.5 billion. However, the price of Libra crashed 95% over the next two days.
Nansen's report said the episode raised questions about insider trading activities, in addition to frustration that led to a president-approved token fiasco.
Additionally, MemeCoins registered an average drawdown of about 46% in February as Crypto Market recorded an average withdrawal of 37% per Artemis data.
In particular, the end of Memocoin's frenzy hurt Solana in March, as Ethereum has taken the lead in monthly trading volumes so far after following behind for five months.
