Solana’s decentralized exchanges (DEXs) processed $54 billion in trading volume in July, surpassing Ethereum’s $52 billion. This marks the first time Solana has overtaken Ethereum in on-chain volume, according to DefiLlama.
Solana’s Rise to the Top
Solana vs. Ethereum
For the first time, Solana’s DEXs exceeded Ethereum’s in monthly trading volume. Solana processed $54 billion, while Ethereum managed $52 billion in July. Currently, 29% of DEX trades occur on Solana, with Ethereum close behind at 28%. Ethereum Layer 2 Arbitrum ranks third with $24 billion, followed by BSC at $17 billion, and Coinbase’s Ethereum Layer 2 Base with $15 billion.
Driving Factors Behind Solana’s Success
Memecoins and New Tokens
A significant driver of Solana’s activity is memecoins. These new tokens are often issued on pump.fun, a platform enabling rapid creation of largely speculative coins. Over 17,100 tokens were created in one day, continuing a trend of high memecoin launches since March.
Leading Solana DEXs
Top Performers
Raydium leads Solana’s DEXs with $1.08 billion in total value locked (TVL), followed by Drift at $400 million and Orca at $251 million. According to DefiLlama, Solana’s DEX sector handled $1.4 billion in 24-hour volume.
Overcoming Past Challenges
Network Issues and Reputation
Solana’s journey has been challenging, marked by network congestion and halts, and a close association with convicted crypto figure Sam Bankman-Fried. Despite these issues, Solana began appearing regularly in the top 10 for DEX volume in mid-2022, surpassing Avalanche and Polygon in May 2022.
Significant Growth
Volume Surge
Solana’s most notable jump in DEX volume occurred in Q4 2023, rising to $28 billion from $880 million in September. If the memecoin trend continues, Solana might maintain its position among leading networks for the foreseeable future.
