Based on recent data from DefiLlama, the Solana (SOL) decentralized exchange (DEX) trading volume over a 24-hour period has exceeded the combined volumes of Ethereum and Base DEX trading.
On January 6th, the daily trading volume on decentralized exchanges built on Solana came very close to reaching an impressive $3.8 billion. In contrast, Ethereum’s trading volume was about $1.7 billion, and that of its most widely used layer-2 scaling network, Base, amounted to approximately $1.2 billion, as reported by DefiLlama.
The growing trade activity indicates that the Solana network is gaining more significance within the realm of Decentralized Finance (DeFi), positioning itself as a formidable competitor against Ethereum.
Compared to Ethereum (ETH), Solana (SOL) has significantly surpassed its price increase by around eightfold, as shown in the data provided by TradingView, since the year 2023.
The amount of value locked in Solana’s decentralized finance (DeFi) systems is growing faster than that of Ethereum. By the year 2024, Solana’s Total Value Locked (TVL) increased approximately fivefold, climbing from about $1.4 billion to over $9.5 billion, as reported by DefiLlama.
More individual investors are joining the cryptocurrency market, particularly Solana, as interest grows in meme coins developed on Solana and AI-related tokens, according to a statement by Grayscale Research in December.
Rising trading volumes
By the end of 2024, the daily trading volume on Raydium, Solana’s leading decentralized exchange, surged over tenfold compared to the start of the year. In January, the volume was approximately $180 million, but it skyrocketed to over $3 billion on Dec 31, as reported by DefiLlama.
In the month of November, Raydium outperformed Uniswap, Ethereum’s dominant decentralized exchange, by around 30% in terms of monthly trading volumes, as reported by Messari Research in December, which equates to approximately $30 billion.
In December, the flow of transactions on Uniswap significantly exceeded that of Raydium, as indicated by DefiLlama, with Uniswap recording approximately $92 billion in volume compared to around $61 billion for Raydium.
According to a recent report by Messari, Raydium’s success is primarily due to its strong presence within the Solana network. Notably, the Decentralized Exchange (DEX) often accounts for more than 60% of daily trading volume on Solana’s layer-1 blockchain network.
Specifically, “Trading of memecoins has significantly boosted Raydium’s transaction volume. In fact, memecoins made up a record-breaking 65% of Raydium’s total monthly volume in November,” the report further stated.
Thanks to investment from venture capitalists and predictions from politicians, the total value of memecoins is currently estimated at around $130 billion, as reported by CoinGecko.
In November, the memecoin platform on Solana, Pump.fun, ranked as the 8th most profitable blockchain protocol, with earnings slightly lower than those of major players like Uniswap, Circle (the entity behind USDC).
Over the last month, Pump.fun recorded approximately a quarter of a billion dollars in trading activity, as per information from DefiLlama.
Once enough liquidity has been established, the meme tokens created on Pump.fun are often exchanged on the platform Raydium.
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2025-01-06 22:51