- Solana reaches a DEX volume milestone.
- Overtakes Ethereum and BSC.
- Memecoins drive network traffic.
Decentralized finance (DeF) has seen significant growth 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.
The latest data shows that Solana reached a significant milestone. The network surpassed $100 billion in volume on decentralized exchanges for the first time. DEX traffic on Solana now surpassed that of all Ethereum and its L2s combined.
Solana Breaks Records with $115 Billion DEX Volume
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 and placed Solana ahead of Ethereum and BSC.
In comparison, Ethereum’s DEX volume in November so far was $55.4 billion. What is more, Solana’s 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 only reached $91.99 billion so far this month.
What’s Behind Solana’s DEX Dominance?
A major factor in Solana’s DEX volume has been the growth of memecoins. Solana-based memecoins like BONK, dogwifhat, Popcat, and PNUT attracted billions in transactions. Both retail investors and bots attracting substantial liquidity to Solana.
A large contributor to Solana’s 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 chain. Solana has a TVL of $8.7 billion, compared to Ethereum’s $63.9 billion.
On the Flipside
- Solana’s 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.
Read more about memecoin markets:
Memecoins Have Gotten “A Little Weird”, Warns CZ
Read more about Pump.fun news:
How a Trading Bot Made $6.8M on Pump.fun Memecoins
