In July, Solana’s decentralized exchange (DEX) handled 30% of total cryptocurrency trading volume, surpassing Ethereum. However, the cryptocurrency market is now facing major challenges as the Japanese stock market sell-off triggered $500 billion in losses.
If Solana’s price falls below $115, it could fall further to $107. Bitcoin fell more than 10% and is trading at $53,270, while Solana fell nearly 17%. The overall crypto market capitalization fell 13% to $1.87 trillion. Despite the market downturn, trading volume surged 119.72% to $142.44 billion.
Solana’s interest rises amid market volatility and Japanese stock sell-off
The growing interest in Solana has come as traders anticipate the launch of the Solana ETF in the United States. However, the recent drop in cryptocurrency prices is associated with a sharp sell-off in Japanese stocks, especially the Nikkei 225 index, which fell 7.1%.
On August 2, Japanese bank stocks suffered their worst performance since 2008, affected by the Bank of Japan's decision to raise interest rates. This sudden market drop caused the total cryptocurrency market value to shrink by $500 billion in three days, marking the largest 72-hour drop in more than a year.
Solana DEX Performance During the Market Downturn
Solana's decentralized exchange (DEX) protocol performed strongly despite the decline in the broader market. In July, Solana accounted for 30% of the total crypto DEX trading volume, surpassing Ethereum's 28.12%. By the end of the month, Solana's DeFi ecosystem processed $56.849 billion in transactions, surpassing Ethereum's $53.867 billion.
Currently, Solana (SOL) is trading at $122, a sharp drop of 15.76% in the past 24 hours and 37.2% in the past week. If Solana's price falls below $115, it may fall further to the $107 support level. Conversely, if the price rises above $135, it could hit the $164 resistance level.
