According to data from DefiLlama, the Solana network has reached a significant milestone by surpassing both Ethereum and Base in 24-hour decentralized exchange (DEX) trading volume. On January 6th, daily trading volume across Solana-based DEXs neared $3.8 billion, outpacing Ethereum’s $1.7 billion and Base’s $1.2 billion.
Growing Trading Volume Highlights Solana’s Expanding Role in DeFi
The growing trading volume on the Solana network highlights its expanding role in decentralized finance (DeFi) and its position as a competitor to Ethereum. The data from DefiLlama demonstrates that Solana is increasingly becoming a major player in the DEX market, with its trading volumes surpassing those of Ethereum and Base.
Price Performance: Solana Outperforms Ethereum by Eight Times
From a price perspective, Solana (SOL) has outperformed Ether (ETH) by approximately eight times since 2023, according to data from TradingView. This significant price increase demonstrates the growing interest in Solana and its potential for future growth.
Total Value Locked (TVL): Solana Outpaces Ethereum
Solana’s total value locked (TVL) is also outpacing 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 Flocking to Solana
According to Grayscale Research, retail traders are increasingly entering the crypto market through Solana, driven by speculation around Solana-based memecoins and AI agent tokens.
Rising Trading Volumes: Raydium and Pump.fun Lead the Charge
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 Dec. 31, according to DefiLlama.
Raydium Surpasses Uniswap in Monthly Trading Volumes
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. While this lead was reversed in December, with Uniswap’s volume reaching $92 billion compared to roughly $61 billion for Raydium, the data demonstrates the significant growth of Raydium and its dominance within the Solana ecosystem.
Memecoin Trading Drives Raydium’s Volume
The success of Raydium is largely attributed to its dominance within the Solana ecosystem. According to the Messari report, ‘[m]emecoin 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.’
Pump.fun: A Memecoin Platform on Solana
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, ranking just below giants such as Uniswap and Circle, the issuer of USD Coin (USDC). After bootstrapping sufficient liquidity, memecoins minted on Pump.fun are typically traded on Raydium.
Conclusion
The data from DefiLlama demonstrates that Solana is increasingly becoming a major player in the DEX market, with its trading volumes surpassing those of Ethereum and Base. The growing interest in Solana and its potential for future growth makes it an exciting development in the world of DeFi. As retail traders continue to flock to Solana, driven by speculation around memecoins and AI agent tokens, it will be interesting to see how this trend continues to unfold.
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