The Solana blockchain has made waves in the decentralized finance (DeFi) sector by surpassing Ethereum and Base combined in 24-hour decentralized exchange (DEX) trading volume. According to recent data from DefiLlama, Solana clocked nearly $3.8 billion in trading volume within a single day. This remarkable achievement not only highlights Solana’s increasing prominence but also signifies its rising status as a formidable player in the crypto landscape.
In stark contrast, Ethereum reported a trading volume of around $1.7 billion, while its popular layer-2 solution, Base, trailed behind with approximately $1.2 billion. The growing interest in Solana-backed DEXs reflects a significant shift among retail traders, many of whom are now turning to Solana as speculation around memecoins and AI agents intensifies.
Furthermore, Solana’s total value locked (TVL) has skyrocketed, recording a fivefold increase in 2024 alone. It surged from about $1.4 billion to over $9.5 billion, making it a fierce competitor to Ethereum’s dominance. As we explore these trends, it’s evident that Solana’s ecosystem is thriving and evolving rapidly in response to the dynamics of the crypto market.
One remarkable feature of Solana’s success can be attributed to its leading DEX, Raydium. In 2024, Raydium’s 24-hour trading volumes soared over tenfold, from approximately $180 million at the start of the year to more than $3 billion by December 31. The competitive edge of Raydium is underscored by its ability to consistently capture over 60% of daily DEX volume on the Solana network. Notably, in November, Raydium even managed to outperform Uniswap, Ethereum’s premier DEX, achieving a monthly trading volume around $30 billion more than its rival.
However, the tide turned in December, as Uniswap reclaimed its lead with a total volume of $92 billion, leaving Raydium at roughly $61 billion. Despite this, Raydium’s meteoric rise is largely linked to an increase in memecoin trading, which accounted for an exceptional 65% of its monthly volume in November alone. The demand for memecoins, fueled by venture capital and speculative trading, has captivated the cryptocurrency market, with a total market capitalization of approximately $130 billion, according to CoinGecko.
A standout example of this trend is the platform Pump.fun, which has emerged as Solana’s leading memecoin venue. In just 30 days, Pump.fun facilitated nearly $250 million in trading volume, ranking among the top blockchain protocols in earnings. The interdependence of Pump.fun and Raydium illustrates the vibrant liquidity landscape within Solana’s ecosystem, which is propelling its growth in the DeFi space.
As Solana gains traction and draws in retail investors, its integrated strategies and liquidity solution present a compelling alternative to the Ethereum ecosystem. With trading volumes reflecting increased user engagement and market interest, the race for DeFi dominance between Solana and Ethereum is more competitive than ever. Keeping an eye on these developments will be crucial for enthusiasts and investors alike as 2024 unfolds.
