Solana DEX trading volume fell to its lowest level since September 2024, with the market focusing on the $80 support level.

Solana's native token, SOL, fell approximately 11% after encountering resistance at $93 last Wednesday, significantly underperforming the overall crypto market and repeatedly testing the $80 support level. Meanwhile, Solana's network fees have declined for two consecutive months, raising market concerns that its price may further retest the $75 level. On-chain data shows that Solana's current total value locked (TVL) is approximately $6.3 billion, still significantly lagging behind Ethereum's $54.1 billion. However, Solana's network fees have remained 80% higher over the past 30 days, primarily due to Ethereum's reduction of mainnet fees through Layer 2 Rollups and data blobs. Specifically, Solana's network fees fell to $18.5 million in March, a 42% decrease from $30 million in January, mainly due to the shrinking trading volume on decentralized exchanges (DEXs). Data shows that Solana DEX trading volume fell to $55.5 billion, the lowest level since September 2024. In contrast, Ethereum's DEX trading volume in March was $41 billion, a 23% decrease from two months prior. However, when considering Layer 2 networks such as Base, Arbitrum, Polygon, and Optimism, its DEX market share has risen from 33% in January to 42%, challenging Solana's dominance and explaining SOL's current downward pressure. Nevertheless, Solana's ecosystem fundamentals remain supportive. In the past 30 days, Solana boasted 13 DApps with revenues exceeding $1 million, surpassing Ethereum's 11 and BNB Chain and Base's 4 each. Protocol revenues, including those from projects like Helium Network, continue to attract developer and funding attention. Overall, while declining DEX activity is dragging down short-term performance, Solana's ecosystem profitability and developer appeal remain strong, and there is insufficient evidence to suggest that SOL will necessarily fall below the $75 support level due to declining network fees. (Cointelegraph)