Decentralized exchanges (DEX) on the Solana blockchain network have recently seen a notable drop in trading activity. According to data analysis from Artemis’ dashboard, trading volume as of May 26th was $984 million, a significant decrease from the $1.5 billion recorded just three days earlier. This decline is particularly striking considering the record high in April, when Solana’s DEX volume reached $60 billion.

This recent decrease suggests a possible waning interest among traders in meme coins based on Solana, potentially affecting the value of SOL, Solana's native token. At the time of writing, SOL is valued at $161.49, down from nearly $190 a few days ago.

It's important to recognize that the demand for SOL is closely linked to meme coin trading activity, as most meme coins require SOL for transactions. Thus, if meme coin demand decreases, bids for SOL are likely to follow suit.

Another important indicator to monitor for Solana's short-term trajectory is open interest (OI), which represents the total value of all open positions in a contract. An upward trend in OI is typically bullish. However, data from Santiment indicates a decline in Solana's OI from nearly $2.2 billion on May 20th to $1.9 billion, suggesting a decrease in market participation, which could weaken the potential for a price increase.

Additionally, Solana is currently lagging behind competitors like Aptos and Sui in terms of blockchain activity. If these projects continue to outpace Solana in a sustainable manner, the platform may lose market value and price. However, if this trend reverses, Solana could experience renewed growth.