- Solana reaches DEX volume milestone.
- Overtakes Ethereum and BSC.
- Memecoin drives network traffic.
Decentralized finance (DeF) has seen significant growth over 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.
According to the latest data, Solana has reached an important milestone. For the first time in a decentralized exchange, network size surpassed $100 billion. Solana’s DEX traffic now exceeds that of all Ethereum and L2 combined.
Solana Breaks Record with DEX Trading Volume of $115 Billion
Memecoin is once again putting Solana in the spotlight. On November 26th, Solana Network recorded record DEX trading volume. Monthly DEX trading volume exceeded $115 billion, with Solana ahead of Ethereum and BSC.
In comparison, Ethereum’s DEX trading volume as of November was $55.4 billion. Additionally, Solana’s volume was higher than that of Ethereum and all Level 2 scaling networks combined. Trading volume on Ethereum, Base, Arbitrum and other L2 DEXs is only $91.99 billion so far this month.
What’s behind Solana’s DEX dominance?
A major driver of Solana’s DEX trading volume was the growth of memecoins. Solana-based memecoins such as BONK, dogwifhat, Popcat, and PNUT have attracted billions of dollars in transactions. Both retail investors and bots are attracting significant liquidity to Solana.
A major contributor to Solana’s memecoin dominance is Pump.fun. This platform makes memecoin creation easier than ever, driving a lot of traffic. In September, Pump.fun achieved $100 million in revenue, proving the interest of traders.
Despite this, Solana lags behind Ethereum in terms of Total Value Locked (TVL), which represents the value of all assets on the chain. Solana has a TVL of $8.7 billion compared to Ethereum’s $63.9 billion.
On the flip side
- Solana’s exposure to memecoins also carries risks. If the volatile memecoin market declines, Solana may face the following problems: network stability.
- Solana Network is continued criticism About the assumed centralization.
Why This Matters
DEX dominance is a key indicator of ecosystem strength. If Solana keeps this up, it is in a strong position to grow.
Learn more about the Memecoin market:
Memecoins are “getting a little weird,” CZ warned.
Find out more about Pump.fun news:
How a Trading Bot Made $6.8 Million from Pump.fun Memecoins