# LIBRA Token Controversy Shakes Trust in Solana Ecosystem
# BSC Leads DEX Trading Volume; Hyperliquid and Sonic Surge
The Solana network-based decentralized exchange (DEX) trading volume has seen a decline for six consecutive weeks, exacerbating investor concerns as the trading volume has plummeted about 76% from its previous peak of $97.5 billion.
According to DeFiLlama, the weekly DEX trading volume on the Solana network from February 15 to 21 was recorded at $21.22 billion, marking a 27.21% decrease from the prior week. Individual platforms also noted significant declines, with Raydium’s volume falling 54.34% to $7.211 billion and major DEXs like Orca and Pump.fun seeing decreases between 20% and 30%.
The Solana DEX trading volume has been on a consistent downward trend since peaking at $97.5 billion in the second week of January, reaching $21.22 billion this week. This decline is partly attributed to a broader correction in the cryptocurrency market. However, a significant factor impacting investor sentiment is the recent controversy surrounding the LIBRA token.
# LIBRA Token Controversy Shakes Trust in Solana Ecosystem
The LIBRA token saw a sharp increase after briefly being promoted by Argentine President Javier Milei on social media, but allegations of insider trading and misconduct quickly emerged, fueling the controversy. The aftermath led to the resignation of Ben Chow, co-founder of Solana DEX myeteor, and prompted an official investigation by Jupiter.
The price of SOL also took a hit, dropping 17% from $204 to $169 following the LIBRA token controversy. This decline in trust among investors regarding Solana-based projects is seen as a contributing factor to the reduced DEX trading volumes. Fears have increased across the Solana ecosystem, particularly with allegations that insiders used confidential information to gain unfair profits related to meme coins like Hawk, Trump, Melania, and Libra, spearheaded by Meteor.
In response, Meow, the co-founder of Jupiter, stated, “Our team has not been involved in any insider trading, including LIBRA.” Nevertheless, the allegations were further fueled when Moty Povolotsky, founder of decentralized finance project DeFiTuna, claimed that Ben Chow had profited millions through an influencer network.
The outcome of Jupiter’s investigation and the disclosure of additional information regarding internal issues at Meteor are seen as crucial factors that could influence the recovery of Solana network transaction volumes.
# BSC Leads DEX Trading Volume; Hyperliquid and Sonic Surge
Over the past seven days, the Binance Smart Chain (BSC) network recorded the highest trading volume in the DEX market. DeFiLlama reported that BSC achieved a weekly trading volume of $2.1462 billion, maintaining its top position with a 26.99% market share for the second consecutive week. Solana followed with $2.1226 billion, and Ethereum (ETH) took third place with a trading volume of $1.3493 billion.
Meanwhile, some networks have experienced significant growth. Hyperliquid saw a 30.18% increase to $1 billion, while Sonic experienced an explosive growth rate of 84.23%, reaching $500 million.
As Solana-based DEX trading volumes decline, investors seem to be gravitating towards relatively stable platforms. It remains to be seen whether this trend will continue.
