- Solana reaches a DEX volume milestone.
- Overtakes Ethereum and BSC.
- Memecoins drive network traffic.
Decentralized finance (DeF) has grown significantly in the past few years. This year, Solana has significantly increased its dominance. Thanks to its influence in the memecoin market, Solana has slowly overtaken other networks in this metric.
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The latest data shows that Solana reached a significant milestone. For the first time, the network surpassed $100 billion in volume on decentralized exchanges. DEX traffic on Solana now exceeds that of all Ethereum and its L2s combined.
Solana Breaks Records
Memecoins are once again putting Solana in the spotlight. On November 26, the Solana network saw a record volume of DEX transactions. Monthly DEX transactions surpassed $115 billion, placing Solana ahead of Ethereum and BSC.
In comparison, Ethereumโs DEX volume in November so far was $55.4 billion. Moreover, Solanaโs volume was higher than the combined volume of Ethereum and all of its level-2 scaling networks. Ethereum, Base, Arbitrum, and other L2 DEX volumes have only reached $91.99 billion this month.
Whatโs Behind Solanaโs DEX Dominance?
A major factor in Solanaโs DEX volume has been the growth of memecoins. Solana-based memecoins like BONK, dogwifhat, Popcat, and PNUT attracted billions in transactionsโboth retail investors and bots attracting substantial liquidity to Solana.
A large contributor to Solanaโs memecoin dominance is Pump.fun. The platform makes it easier than ever to create memecoins, attracting a lot of traffic. In September, Pump.fun reached $100M in revenue, showcasing trader interest.
Still, Solana lags behind Ethereum in terms of total value locked (TVL), which represents the value of all assets on the chain. Solana’s TVL is $8.7 billion, compared to Ethereumโs $63.9 billion.
On the Flipside
- Solanaโs exposure to memecoins also comes with risks. If the volatile memecoin market drops, Solana could face issues with network stability.
- The Solana network faces ongoing criticism over its supposed centralization.
Why This Matters
DEX dominance is a key metric of ecosystem strength. If Solana continues to maintain it, it is in a strong position to grow.
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