$SOL PRICE 📉 DECLINING ON-CHAIN ACTIVITY & RISING SCAM FEARS 😟

Solana (SOL) has taken a sharp hit today, and two key factors are standing out behind the dip.

1. Falling On-Chain and DEX Activity:

Solana’s ecosystem has seen a significant drop in engagement. Weekly on-chain volumes and decentralized exchange (DEX) transactions have plunged by 24–30%, dragging the network’s usage to its lowest levels of 2024.

With memecoins previously fueling high transaction activity, the sudden decline reflects fading retail enthusiasm and less speculative trading. This directly impacts demand for SOL as gas fees and liquidity both weaken across the board.

2. Spike in Scam-Related Sentiment:

Recent high-profile scams have further shaken confidence in the Solana ecosystem. Several memecoin rug pulls—some even linked to wallets associated with North Korean hacking group Lazarus have left users wary.

As new projects struggle to gain traction due to fear of fraud, genuine builders are also feeling the pressure. The perception of Solana as a "scam-heavy" chain is taking a toll on user trust and market sentiment, prompting a sell-off from cautious investors.