According to data from DefiLlama, the Solana network has surpassed Ethereum and Base combined in 24-hour decentralized exchange (DEX) trading volume. This milestone highlights the growing importance of the Solana network in decentralized finance (DeFi) and its position as a competitor to Ethereum.
Daily Trading Volume Across Solana-Based DEXs
As per DefiLlama, daily trading volume across Solana-based DEXs neared $3.8 billion on January 6th, compared to $1.7 billion for Ethereum and $1.2 billion for Base, Ethereum’s most popular layer-2 scaling network. This significant increase in trading volume underscores the expanding role of the Solana network in DeFi.
Price Comparison: Solana Outperforms Ethereum
From a price perspective, Solana (SOL) has outperformed Ether (ETH) by approximately eight times since 2023, according to data from TradingView. This impressive performance is a testament to the growing confidence in the Solana network and its native token.
Total Value Locked (TVL) Comparison: Solana Outpaces Ethereum
Solana’s total value locked (TVL) has also outpaced 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 significant increase in TVL is a strong indicator of the growing adoption and usage of the Solana network.
Retail Traders Flocking to Solana
According to Grayscale Research, retail traders are increasingly entering the crypto market through Solana as speculation intensifies around Solana-based memecoins and AI agent tokens. This trend highlights the growing interest in the Solana network and its applications.
Rising Trading Volumes on Raydium
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 31st, according to DefiLlama. This remarkable growth underscores the dominance of Raydium within the Solana ecosystem.
Monthly Trading Volumes: Raydium Outperforms Uniswap
In November, Raydium beat Uniswap, Ethereum’s leading DEX, in monthly trading volumes by roughly 30%, or approximately $30 billion, according to a December report by Messari Research. However, the trend reversed in December, with Uniswap’s volume reaching $92 billion compared to roughly $61 billion for Raydium, according to DefiLlama.
The Success of Raydium
The success of Raydium is largely attributed to its dominance within the Solana ecosystem. As per the Messari report, Raydium consistently captures over 60% of daily DEX volume on the layer-1 blockchain network. In particular, memecoin trading has become a substantial driver of Raydium’s volume, with memecoins accounting for an all-time high of 65% of Raydium’s monthly volume in November.
Memecoin Market Capitalization
Fueled by venture capital funding and political speculation, memecoins now command approximately $130 billion in market capitalization, according to CoinGecko. This significant growth highlights the growing interest in meme-based tokens and their applications.
Top Memecoin Platform: Pump.Fun
In November, Solana’s top memecoin platform, Pump.fun, was the eighth-highest-earning blockchain protocol, ranking just below giants such as Uniswap and Circle, the issuer of USD Coin (USDC). This achievement underscores the importance of Pump.fun within the Solana ecosystem.
Trading Volume on Pump.Fun
After bootstrapping sufficient liquidity, memecoins minted on Pump.fun are typically traded on Raydium. In the past 30 days, Pump.fun generated nearly $250 million in trading volume, according to data from DefiLlama.
The Growing Importance of Solana in DeFi
As highlighted by these statistics and trends, the Solana network has emerged as a significant player in decentralized finance (DeFi). With its growing adoption, increasing TVL, and rising trading volumes, Solana is solidifying its position as a competitor to Ethereum. The expanding role of the Solana network in DeFi underscores the importance of exploring alternative blockchain networks and their applications.
Conclusion
In conclusion, the Solana network has surpassed Ethereum and Base combined in 24-hour decentralized exchange (DEX) trading volume, according to data from DefiLlama. This milestone highlights the growing importance of the Solana network in decentralized finance (DeFi) and its position as a competitor to Ethereum. With its impressive growth in TVL, rising trading volumes, and expanding role in DeFi, the Solana network is an area worth exploring for investors and users alike.
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