DeFi weekly trading volume has experienced a decline of 25% due to a pullback in crypto prices, according to data from DefiLlama. Among the top 10 blockchains by traded volume, Polygon saw the biggest slump at 40%, followed closely by Avalanche with a fall of 39.5%. Even popular meme coin chain Solana did not escape the downward trend, experiencing a significant slide of 20%. In contrast, Base saw a substantial increase of over 64% driven by the “meme coin mania,” and Starknet also witnessed a positive change with a 28% increase in activity on its DEXes.
Tristan Frizza, the founder of decentralized platform Zeta Markets, suggests that this decline in trading volumes can be attributed to the retreat in prices observed last week. He explains that such retractions typically have a disproportionate impact on meme coins and altcoins, leading to a significant reduction in trading activity for these assets. This pattern may be seen as common market behavior, where investors start pulling back from more speculative assets, resulting in decreased trading volumes for these coins.
Furthermore, this decline can be seen as a healthy adjustment to the market’s euphoria, as the previous week had witnessed a record-high weekly trading volume of $73.6 billion on-chain. This latest pullback could be viewed as a necessary correction after the market’s exuberance.