Solana Price Faces Downside Risk Amid Declining Volumes

The Solana price has been struggling to gain momentum, with some analysts predicting a potential 30% downside risk if it fails to break past $90.

One of the main concerns is the lack of progress on the technical front. Unlike other altcoins such as Zcash and BNB, which have seen significant advancements in terms of DeFi and TradFi trends, Solana has not made any substantial breakthroughs in these areas.

Transaction volumes within the Solana ecosystem have also been declining. After reaching a new weekly record of 959 million transactions in early February, they have plateaued at around 700 million transactions per week in recent weeks.

The decentralized exchanges (DEX) within the Solana ecosystem have not been immune to this decline either. Transaction volumes on these platforms have dropped by 62% as traders seem to have lost interest in meme coins following a series of losses during the latest bear market.