Solana DeFi Reaches New Levels With Record $5 Million Daily Trading Volume Streak

Solana Decentralized Finance (DeFi) is seeing a resurgence amid a rally in the broader market.

According to data compiled by DeFiLlama, Solana Decentralized Exchanges (DEX) have reached a milestone, with daily trading volumes exceeding $5 billion for three consecutive days. This is the first time such a feat has been achieved.

During the week of November 10-16, the Solana DEXs reached a total trading volume of approximately $16 billion. Raydium, a leading DEX in Solana, played a crucial role in this increase, contributing more than 62% of the total trading volume. Next up was another popular exchange Orca, which accounted for 22.2% of trading volume, followed by market makers Lifinity and Phoenix, each with 6.96% and 4.92% of volume , respectively.

What is Fueling Solana?

Syncracy Capital’s recent report highlighted Solana’s rapid catch-up with Ethereum, with 2024 data showing an increase in Solana’s market share revenue. The network’s real economic value (REV) rose to 111% of Ethereum’s in October, up from 1% last year, driven by transaction fees and MEV tips.

Total Application Revenue (TAR), another key metric, also performed well, reaching 109% of Ethereum’s TAR, reflecting the growing fees generated by applications on the Solana network.

“Solana is eating into Ethereum’s market share. This is no longer conjecture, it is very evident in the data. As cyclical tailwinds strengthened over the past twelve months, Solana became the home of the industry for retail financial activity”.

Solana’s financial sector has driven increased activity on the chain, with trading of meme coins at its core, as users look for alternatives to traditional risk-backed assets and high-value tokens. This speculative wave echoed Ethereum’s DeFi boom in 2020, the report added.

Syncracy Capital even said it’s an ideal time for developers to build on Solana. Pump.fun, for example, became the fastest-growing app in crypto history, reaching $100 million in revenue in just 217 days. Currently, the annual revenue rate of the meme coin launcher is $348 million, making it the top revenue generating app in the industry.

DePIN in Solana

Beyond DeFi, Solana’s DePIN sector has grown substantially by sharing infrastructure costs and using on-chain settlement to create a more scalable and efficient network.

Major DePIN projects such as Hivemapper, which has mapped 28% of global roads at minimal cost, and Helium, with a network of 20,000 devices supporting US carriers, demonstrate the industry’s impact.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!