According to data from DefiLlama, the Solana network has surpassed Ethereum and Base combined in 24-hour decentralized exchange (DEX) trading volume. This significant milestone highlights the growing importance of the Solana network in the decentralized finance (DeFi) space.
Solana’s Dominance in Decentralized Finance
The daily trading volume across Solana-based DEXs neared $3.8 billion on January 6, compared to $1.7 billion for Ethereum and $1.2 billion for Base, Ethereum’s most popular layer-2 scaling network. This impressive growth demonstrates the Solana network’s expanding role in DeFi and its position as a competitor to Ethereum.
Price Performance
From a price perspective, Solana (SOL) has outperformed Ether (ETH) by approximately eight times since 2023, according to data from TradingView. This significant price appreciation is a testament to the growing demand for Solana’s ecosystem and its potential as a viable alternative to Ethereum.
Total Value Locked (TVL)
Solana’s total value locked (TVL) is also outpacing Ethereum’s. In 2024, Solana’s TVL rose roughly five times, from around $1.4 billion to upward of $9.5 billion, according to DefiLlama. This substantial increase in TVL demonstrates the growing adoption and confidence in the Solana ecosystem.
Retail Traders Flock to Solana
Grayscale Research noted that "retail traders increasingly enter the crypto market through Solana [as] speculation intensifies around Solana-based memecoins and AI agent tokens." This trend is further fueled by the rise of memecoin trading, which has become a substantial driver of Raydium’s volume.
Rising Trading Volumes
In 2024, 24-hour trading volumes on Raydium, Solana’s leading DEX, increased by more than 10 times, from around $180 million in January to more than $3 billion on December 31, according to DefiLlama. This remarkable growth demonstrates the growing demand for decentralized exchanges and the potential of the Solana ecosystem.
Raydium’s Dominance
According to a December report by Messari Research, Raydium beat Uniswap, Ethereum’s leading DEX, in monthly trading volumes by roughly 30%, or approximately $30 billion. While this figure reversed in December, with Uniswap’s volume reaching $92 billion compared to roughly $61 billion for Raydium, the success of Raydium is largely attributed to its dominance within the Solana ecosystem.
Memecoin Trading
The rise of memecoins has become a significant driver of trading volumes on Raydium. In November, memecoins accounted for an all-time high of 65% of Raydium’s monthly volume. This trend is fueled by venture capital funding and political speculation, with memecoins now commanding approximately $130 billion in market capitalization, according to CoinGecko.
Pump.Fun Trading Volume
Fueled by venture capital funding and political speculation, Pump.fun has become a major player in the Solana ecosystem. In November, Pump.fun was the eighth-highest-earning blockchain protocol, ranking just below giants such as Uniswap and Circle. The past 30 days have seen nearly $250 million in trading volume on Pump.fun, according to data from DefiLlama.
Conclusion
The Solana network’s growth in decentralized exchange trading volumes is a significant milestone for the ecosystem. With its expanding role in DeFi, growing TVL, and rising trading volumes, Solana is poised to become a major player in the cryptocurrency space. The success of Raydium and Pump.fun demonstrates the potential of the Solana ecosystem and its ability to attract retail traders and institutional investors alike.
References
- DefiLlama: Solana-based DEXs
- TradingView: Price performance of SOL and ETH
- Grayscale Research: Retail traders flocking to Solana
- Messari Research: Raydium’s dominance in monthly trading volumes
- CoinGecko: Memecoin market capitalization
- DefiLlama: Pump.fun trading volume
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