Solana is riding a wave of positive news, hitting a major decentralized finance (DeFi) scale milestone amid surging demand for the devices that power its ecosystem.
The blockchain network built for scale hit $1 billion in 24-hour decentralized exchange (DEX) trading volume this week, narrowly trailing Ethereum’s $1.164 billion for the first time ever.
key point
- Solana reached $1 billion in 24-hour DEX trading volume, just behind Ethereum’s $1.164 billion.
- Solana phones are sold out in the US, showing growing demand for Solana-based projects.
- BONK, a meme coin associated with the Solana ecosystem, has surged 100% in price, breaking multiple records.
- Despite the milestone, Solana’s price fell more than 5% due to profit-taking selling.
The surge highlights Solana’s monumental growth in 2023, which saw it surpass Ethereum in NFT sales and record the highest annual revenue among the top 15 cryptocurrencies. The increase in transaction volume was fueled by excitement as Saga Mobile’s sold-out launch of Solana-based cryptocurrency phones. U.S. inventory, which was originally scheduled for release in the first quarter of 2023, was quickly sold out as institutional interest increased.
“Amazing milestone. Year 6, we’re just getting started!” Raj Gokal, co-founder of Solana Labs, tweeted. This news comes shortly after BONK, a meme coin associated with Solana’s ecosystem, saw exponential 100% gains after being listed on major exchanges like Binance.
Solana founder Anatoly Yakovenko was shocked that daily trading volume surpassed $1 billion. “A variety of factors played into reaching this important milestone,” he told reporters. “This includes significant purchases of Solana Mobile, high trading volume for the dog-themed joke coin BONK, and optimism about the Solana ecosystem.”
Wow, what day is it????????????
Saga phones are officially sold out in the US! We sincerely thank everyone who participated in this trip ♥️
We still have a few left for our friends in Europe.
Stay tuned to see what’s next ????
— Solana Mobile ???? (@solanamobile) December 15, 2023
The Orca DEX aggregator has seen its total value locked (TVL) triple to over $1 billion in the past two months as investors chase airdrops. Riding a wave of recorded network activity, Solana’s predictions are getting louder.
“Solana’s interest in DeFi was sparked by potential participants in Jupiter’s ZUP airdrop, which is scheduled to take place in January next year,” said analyst Katherine Price, adding that the top Solana DEX project is already on the market. It was mentioned that the daily trading volume of Ethereum leader Uniswap was exceeded. “Token distribution will take place in four stages. “The team has no plans to hold more token sale rounds, so the JUP airdrop is the only mainstream opportunity to get your JUP allocation early.”
24-hour volume:
Uniswap: $909 million
Jupiter: $992M$JUP I’m going crazy.All your volumes now belong to Solana.
Damn, I still have a bunch of Ethereum. Why do I keep fussing with my bag?
— Jacob Canfield (@JacobCanfield) December 16, 2023
Others warned that the trading frenzy may be short-lived as speculators take profits. SOL prices are down nearly 6% from their weekly highs despite the fanfare over the new milestone.
“Jupiter’s volume surge may have simply been caused by excitement over the possibility of an upcoming airdrop,” said one observer. For farmers focused on acquiring tokens before listing on exchanges, anticipation of an airdrop can move the market significantly.
Nonetheless, Solana’s progress in 2023 has undoubtedly been remarkable. As the third-largest blockchain by market capitalization, it is within striking distance of overtaking XRP. There could be more fireworks as developer activity, institutional interest, and transaction volume continue to increase.