Solana Dominates Ethereum in DeFi Activity with Monthly DEX Volume Exceeding $100 Billion
Solana’s decentralized finance (DeFi) activity has been gaining momentum, with its decentralized exchanges (DEX) outpacing Ethereum (ETH) in monthly trading volume. In November alone, Solana-based DEXes have seen over $100 billion in trading volume, marking a significant milestone for the ecosystem.
As the fourth-largest cryptocurrency with a market cap of $118.34 billion, Solana has been on an impressive price trajectory. Recently, the digital asset reached a new all-time high (ATH) of $263, a remarkable feat considering it had dipped to as low as $8 during the FTX fiasco.
Now, another milestone has been achieved as Solana-based DEXes exceeded $100 billion in monthly trading volume for the first time. According to data from DefiLlama, the cumulative trading volume recorded by Solana DEXes over the past 30 days stands at $116.51 billion.
In comparison, Ethereum mainnet-based DEXes saw $61.61 billion in trading volume during the same period, making Solana’s DEX trading volume more than double that of Ethereum’s. The month-over-month (MoM) increase in Solana’s DEX volume surged over 100% from $52.5 billion in October to $116.51 billion in November.
Furthermore, the total value locked (TVL) in Solana’s DeFi ecosystem has grown to $9.30 billion, up from $6.23 billion the previous month. The rise in Solana-based DEX trading volume can be attributed to factors such as the ongoing memecoin frenzy, low transaction fees on the blockchain, and an intuitive user interface.
Although Solana’s TVL has yet to surpass its all-time high of $10.02 billion recorded almost three years ago in November 2021, the blockchain’s TVL hit a low of $210 million in January 2023. At present, $3.58 billion of Solana’s TVL is tied to the liquid staking protocol Jito, while Jupiter DEX holds $2.4 billion, and Raydium accounts for $2.37 billion of TVL.
The growing user adoption of Solana has been instrumental in driving the recovery of its native token, SOL. With its impressive DeFi activity and increasing trading volume, Solana continues to make waves in the crypto space, showcasing its potential for further growth and adoption in the future.
