According to data from DefiLlama, the Solana network has surpassed both Ethereum and Base combined in 24-hour decentralized exchange (DEX) trading volume. This milestone highlights the expanding role of Solana in decentralized finance (DeFi) and its position as a competitor to Ethereum.
Solana’s Growing Presence in DeFi
The daily trading volume across Solana-based DEXs neared $3.8 billion on January 6, compared to $1.7 billion for Ethereum and $1.2 billion for Base, Ethereum’s most popular layer-2 scaling network. This growing trading volume indicates that the Solana network is gaining traction in DeFi, with more users and traders opting to use its services.
Price Performance: Solana Outpaces Ethereum
From a price perspective, Solana (SOL) has outperformed Ether (ETH) by approximately eight times since 2023, according to data from TradingView. This significant price gap highlights the growing popularity of Solana and its potential as a strong competitor to Ethereum.
Total Value Locked (TVL): Solana Overtakes Ethereum
Solana’s total value locked (TVL) is also outpacing Ethereum’s. In 2024, Solana’s TVL rose roughly five times, from around $1.4 billion to upward of $9.5 billion, according to DefiLlama. This growth in TVL indicates that more users are opting to use Solana-based services and lending platforms.
Retail Traders Flock to Solana
According to Grayscale Research, retail traders increasingly enter the crypto market through Solana as speculation intensifies around Solana-based memecoins and AI agent tokens. This influx of new users is driving trading volumes on the network and contributing to its growing popularity.
Rising Trading Volumes: A Key Indicator of Growth
In 2024, 24-hour trading volumes on Raydium, Solana’s leading DEX, increased by more than 10 times, from around $180 million in January to more than $3 billion on December 31, according to DefiLlama. This significant increase in trading volume highlights the growing demand for decentralized finance services on the Solana network.
Raydium’s Dominance: A Key Driver of Solana’s Growth
According to a December report by Messari Research, Raydium beat Uniswap, Ethereum’s leading DEX, in monthly trading volumes by roughly 30%, or approximately $30 billion. This dominance is largely attributed to its success within the Solana ecosystem, capturing over 60% of daily DEX volume on the layer-1 blockchain network.
Memecoins Drive Trading Volumes on Raydium
In particular, memecoin trading has become a substantial driver of Raydium’s volume, with memecoins accounting for an all-time high of 65% of Raydium’s monthly volume in November. This trend highlights the growing popularity of memecoins and their impact on decentralized finance services.
Pump.fun: A Top Memecoin Platform
Fueled by venture capital funding and political speculation, memecoins now command approximately $130 billion in market capitalization, according to CoinGecko. Solana’s top memecoin platform, Pump.fun, was the eighth-highest-earning blockchain protocol in November, ranking just below giants such as Uniswap and Circle.
Conclusion
The Solana network’s growing presence in decentralized finance and its expanding role as a competitor to Ethereum highlight the significant changes taking place in the crypto market. As trading volumes continue to rise and new users enter the space, it will be interesting to see how Solana adapts and evolves to meet the demands of its growing user base.
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