Solana Outpaces Ethereum In DeFi Activity As Monthly DEX Volume Surpasses $100 Billion
Solana (SOL) decentralized finance (DeFi) activity is gaining momentum, with monthly trading volume on its decentralized exchange (DEX) surpassing that of the Ethereum (ETH) DEX. Solana-based DEX trading volume has exceeded $100 billion so far in November, marking an important milestone for the ecosystem.
Solana DeFi Ecosystem Gains Momentum, Surpassing Ethereum DeFi
Solana is the fourth largest cryptocurrency with a reported market capitalization of $118.34 billion, and its price trajectory has been at record levels. Most recently, the digital asset hit an all-time high (ATH) of $263 after falling to $8 at the height of the FTX fiasco.
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Now, the Layer-1 blockchain has achieved another milestone as the monthly trading volume of the Solana-based DEX exceeded $100 billion for the first time. according to data According to DefiLlama data, Solana DEXes recorded a 30-day cumulative trading volume of $116.51 billion.
In comparison, the transaction volume of DEX based on the Ethereum main network during the same period was US$61.61 billion. This means that Solana’s DEX trading volume is more than twice that of Ethereum.
From a month-on-month perspective, Solana’s DEX trading volume surged by more than 100% from October to $52.5 billion. Meanwhile, the total value locked (TVL) of the Solana DeFi ecosystem has increased to $9.3 billion from $6.23 billion a month ago.
The unprecedented growth in Solana-based DEX trading volume can be attributed to several factors. These include the ongoing memecoin craze, the blockchain’s low transaction fees, and its intuitive user interface.
It’s worth emphasizing that Solana’s TVL has yet to exceed the $10.02 billion ATH TVL recorded nearly three years ago in November 2021. The blockchain’s TVL hit a low of $210 million in January 2023, dragged down by the broader crypto bear market. The collapse of the FTX exchange added to the market’s deterioration.
As of this writing, $3.58 billion of Solana’s TVL is tied to liquid staking protocol Jito, while Jupiter DEX holds $2.4 billion. Another well-known Solana-based DEX, Raydium, has a TVL of $2.37 billion.
Where will SOL go?
Solana’s growing user adoption has played a crucial role in driving the resurgence of its native token, SOL. On a year-to-date (YTD) basis, SOL has gained more than 157%, rising from $101 on January 1 to $263 on November 23.
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Despite such impressive returns, cryptocurrency experts remain bullish on SOL, predicting further gains for the digital asset. According to a recent analyze By Crypto’s Titan, SOL could hit $400 as it appears to be emerging from a long-term cup-and-handle pattern.
Other bullish factors such as decline Bitcoin (BTC) Dominance and Probability rises The listing of the Solana exchange-traded fund (ETF) could further propel SOL to new highs. At press time, SOL was trading at $248.31, up 0.5% in the past 24 hours.
Featured images from Unsplash, charts from DefiLlama.com and Tradingview.com
