As a researcher who has been closely following the decentralized finance (DeFi) landscape for quite some time now, I must say that the recent performance of Raydium over Uniswap is truly intriguing. Coming from a background where I’ve seen many projects rise and fall, it’s refreshing to see a newcomer like Raydium consistently outperforming an established player such as Uniswap.
For two consecutive months now, the decentralized exchange (DEX), known as Raydium, has exceeded the monthly trading volumes of its counterpart, Uniswap, as indicated by a recent report from Messari dated December 10th.
Last month, I found myself witnessing an impressive milestone as Raydium, the decentralized exchange (DEX) built on Solana, surpassed Uniswap – a platform I’ve been quite familiar with for its popularity – by around 30%. In terms of monthly volumes, this translates to a staggering $30 billion difference, according to the latest report from Messari.
After a closer victory in October, as stated in a November 17th post on the X platform by Ryan Watkins, co-founder of Syncracy Capital, Raydium surpassed Uniswap by around 10%.
According to a report by Messari, Raydium’s success can be mainly traced back to its strong position within the Solana ecosystem. Notably, this decentralized exchange (DEX) regularly captures more than 60% of the daily trading volume on the Solana blockchain network.
To clarify, the trade of “memecoins” significantly boosted Raydium’s transaction activity. In fact, memecoins represented a record-breaking 65% of Raydium’s total monthly volume in November, according to the report.
Memecoin frenzy
Backed by investments from venture capitalists and fueled by political conjecture, the total value of memecoins currently stands at around $130 billion as per CoinGecko’s latest data.
2024 saw Solana becoming a bustling marketplace for meme-based cryptocurrency trades. This was primarily due to the explosive growth in popularity of Pump.fun, a unique platform that facilitated the creation of memecoins and boosted their trading volumes.
Many Pump.fun memecoins eventually trade on Raydium.
Based on DefiLlama’s data, Pump.fun ranks as the fifth most profitable Web3 protocol in terms of revenue, generating over $100 million in fees during the last month.
At Pump.fun, our earnings are slightly lower than those of heavyweights like Circle, the entity behind US Dollar Coin (USDC), and the Solana network in terms of revenue.
In October, the creators of Pump.fun announced their intentions for a future token launch and an advanced trading platform, which they called “Pump Progress.
Raydium functions exclusively on the Solana network, while Uniswap is widely established across approximately 18 different blockchain platforms, as reported by DefiLlama.
In the year 2024, Solana’s Total Value Locked (TVL) has grown roughly fivefold. However, it is significantly less than that of Ethereum, currently leading with over $70 billion in TVL as reported by DefiLlama.
According to the Messari report, Solana’s growth can be attributed in part to its technological benefits such as high processing speeds and affordable transaction fees, making it an appealing choice for users looking for a quicker and less expensive decentralized finance (DeFi) experience.
On Oct. 10, Uniswap launched its own application-specific layer-2 blockchain network, Unichain.
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2024-12-10 21:10