The Solana ecosystem has experienced an extraordinary surge in decentralized exchange (DEX) activity, driven by a wave of memecoin enthusiasm sweeping the crypto market. Over the past week, Solana-based DEXes processed an unprecedented $33 billion in trading volume, marking a significant leap from the prior record of $18.1 billion, according to DeFi Llama.

Daily trading volumes peaked at $6.88 billion on November 12, consistently surpassing $6 billion in subsequent days.

Solana Outpaces Ethereum in DEX Activity

Solana’s DEX sector has notably outperformed Ethereum’s in weekly trading volume. Solana-based platforms registered $33 billion in trades, compared to $17.7 billion for Ethereum. Other blockchain ecosystems, including Base, BNB Chain, and Arbitrum, followed with $11.9 billion, $10.6 billion, and $9.3 billion, respectively.

While Ethereum’s combined ecosystem, including Base and Arbitrum, still leads with $38.9 billion, Solana’s rapid growth is capturing market attention.

Raydium and Memecoins Drive the Surge

Raydium, a leading Solana DEX, accounted for 66% of the network’s trading volume, recording $22.4 billion in weekly trades—a staggering 149% increase. Much of this activity stems from the popularity of PumpFun, a Solana-based memecoin launchpad that has helped tokens like PNUT and GOAT gain significant traction.

PumpFun also climbed to seventh place in daily fee revenue among web3 protocols, generating $1.52 million, while Raydium collected $627,500 in daily revenue.

Other Solana DEXes, including Orca, reported similarly impressive growth, with weekly trading volumes reaching $6.62 billion—a 169% increase. Lfinity and Phoenix also surpassed $1 billion in weekly trades, growing by 118% and 70%, respectively.

Institutional Interest and Ecosystem Growth

Institutional investment in Solana applications has rebounded strongly, with Solana-based decentralized applications (DApps) attracting $173 million across 29 funding rounds in Q3 2024, according to a recent Messari report. This marks a 54% increase from Q2, highlighting renewed confidence in the Solana ecosystem despite fewer funding rounds.

Fee-related metrics have also surged:

  • Daily fee payers

    increased 109% to 1.9 million.

  • New fee payers

    grew 430% to 1.3 million.

  • The average transaction fee rose 6% to 0.00015 SOL (approximately $0.023).

However, daily transaction volume excluding voting activity dropped 12% to 62 million transactions, suggesting evolving network dynamics.

Challenges and Developments

Despite its success, the Solana ecosystem faces occasional challenges. This week, Phantom, a popular Solana wallet, released an urgent iOS update following reports of app resets that locked users out of their wallets. The issue, though alarming, has been swiftly addressed to reassure users.

Conclusion

With its rapid growth in DEX activity and increasing institutional investments, Solana is cementing its position as a leading blockchain network. The ongoing memecoin mania, alongside significant ecosystem developments, underscores Solana’s potential to sustain its momentum and attract a broader audience in the rapidly evolving crypto landscape.