Solana’s 24-Hour DEX Volume Surpasses Combined Total of Ethereum’s Base Exchange
The Solana network has emerged as a leader in decentralized finance (DeFi) by surpassing both Ethereum and Base in 24-hour trading volume on decentralized exchanges (DEXs). According to data from DefiLlama, the daily trading volume across Solana-based DEXs reached $3.8 billion on January 6th, outpacing Ethereum’s $1.7 billion and Base’s $1.2 billion.
Growing Trading Volume Highlights Solana’s Role in DeFi
The increasing trading volume highlights the growing importance of Solana in the world of decentralized finance (DeFi). As a competitor to Ethereum, Solana is expanding its role as a platform for DEXs, further establishing itself as a key player in the space.
Solana Outperforms Ethereum in Price and Total Value Locked
From a price perspective, Solana’s SOL token has outperformed Ether (ETH) by approximately eight times since 2023, according to data from TradingView. Additionally, Solana’s total value locked (TVL) is also outpacing Ethereum’s, with an increase of roughly five times in 2024, from around $1.4 billion to upward of $9.5 billion.
Retail Traders Flock to Solana-Based DEXs
Grayscale Research noted that retail traders are increasingly entering the crypto market through Solana-based DEXs, fueled by speculation surrounding memecoins and AI agent tokens.
Rise of Raydium Trading Volume
In 2024, the 24-hour trading volume on Raydium, Solana’s leading DEX, increased by more than 10 times, from around $180 million in January to over $3 billion on December 31st. According to DefiLlama, this surge in trading volume was largely driven by memecoin trading.
Raydium Dominance Within the Solana Ecosystem
A report by Messari Research highlighted Raydium’s dominance within the Solana ecosystem, with the DEX consistently capturing over 60% of daily DEX volume on the layer-1 blockchain network. The report also noted that memecoin trading has become a substantial driver of Raydium’s volume.
Memecoins and Their Impact on Trading Volume
With market capitalization reaching approximately $130 billion, memecoins are now commanding significant attention in the crypto space. Fueled by venture capital funding and political speculation, memecoins have become a key factor driving trading volumes on DEXs like Raydium.
Pump.fun Trading Volume
Solana’s top memecoin platform, Pump.fun, generated nearly $250 million in trading volume over the past 30 days. After bootstrapping sufficient liquidity, memecoins minted on Pump.fun are typically traded on Raydium, further highlighting the interconnectedness of Solana-based DEXs.
Conclusion
The Solana network’s growing importance in decentralized finance (DeFi) is evident from its rising trading volume and increasing market capitalization. As a competitor to Ethereum, Solana is expanding its role as a platform for DEXs, solidifying its position as a key player in the space.
Related Articles
- DeFi TVL Nears 2021 Highs on Liquid Restaking, Bitcoin L2s
- Rising Trading Volumes and Memecoin Frenzy: What’s Driving Solana’s Growth?
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