According to data from DefiLlama, the Solana network has exceeded the combined 24-hour decentralized exchange (DEX) trading volume of Ethereum and Base. On January 6th, daily trading volume across Solana-based DEXs neared $3.8 billion, surpassing $1.7 billion for Ethereum and $1.2 billion for Base.
Growing Trading Volume Highlights Solana’s Role in DeFi
The increasing trading volume highlights the expanding role of the Solana network in decentralized finance (DeFi) and its position as a competitor to Ethereum. This growth is a testament to the growing popularity of Solana-based DEXs, such as Raydium, which has seen an over 10-fold increase in 24-hour trading volumes in 2024.
Solana Outperforms Ethereum in Price
From a price perspective, Solana (SOL) has outperformed Ether (ETH) by approximately eight times since 2023, according to data from TradingView. This significant price growth is a key factor contributing to the increased trading volume on Solana-based DEXs.
Total Value Locked (TVL) 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.
Retail Traders Flock to Solana
Grayscale Research noted in December that "retail traders increasingly enter the crypto market through Solana as speculation intensifies around Solana-based memecoins and AI agent tokens." This trend is driving growth on Raydium, which has become a leading DEX on the Solana network.
Raydium’s Trading Volume Soars
In 2024, 24-hour trading volumes on Raydium increased by more than 10 times, from around $180 million in January to more than $3 billion on December 31st, according to DefiLlama. In November, Raydium beat Uniswap in monthly trading volumes by roughly 30%, or approximately $30 billion.
Memecoin Trading Drives Growth
According to a December report by Messari Research, "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." This trend is expected to continue, driven by the increasing popularity of Solana-based memecoins.
Pump.fun Generates Significant Trading Volume
Fueled by venture capital funding and political speculation, memecoins now command approximately $130 billion in market capitalization, according to CoinGecko. In November, Solana’s top memecoin platform, Pump.fun, was the eighth-highest-earning blockchain protocol.
Conclusion
The growing trading volume on Solana-based DEXs highlights the expanding role of the Solana network in decentralized finance (DeFi) and its position as a competitor to Ethereum. With price growth, TVL outpacing Ethereum’s, and retail traders increasingly entering the crypto market through Solana, the future looks bright for this blockchain.
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