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Solana DeFi Ecosystem Thrives: DEX Volume Peaks as TVL Hits Two-Year High

2 mins
Updated by Bary Rahma
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In Brief

  • Solana's DeFi ecosystem is experiencing unprecedented growth, with its decentralized exchange (DEX) activity hitting an all-time high.
  • Total value locked (TVL) has reached a two-year high of almost $4 billion thanks to its growing adoption and usage within the market.
  • Market observers attribute this growth to the network's low transaction fees and the rising popularity of Solana-based memecoins.
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Solana is experiencing robust growth amid the ongoing bull market run that has spread through the crypto industry.

Indeed, Solana’s SOL token has emerged as one of the best performers, rising by around 30% during the past month to around $190.

Solana’s DeFi Soars to All-Time High

Solana’s decentralized finance (DeFi) ecosystem has flourished with the broader crypto market rally since the year’s outset. Data from DeFiLlama illustrates this trend, revealing an extraordinary surge in Solana-based decentralized exchange (DEX) activity.

Over the past 24 hours alone, daily transaction volume has surpassed an impressive $3.6 billion, establishing a new all-time high.

This remarkable upswing in Solana DEX transactions can be primarily attributed to two key factors. One is the network’s commendably low transaction fees, and the second is the rising popularity of meme coins. Noteworthy meme coins like Wen, Dogwifhat, Bonk, and Book of Meme (BOME) have recently witnessed substantial trading volumes and interest.

Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024

Solana DEX Volume
Solana DEX Volume. Source: DeFillama

Interestingly, the collective impact of these factors has propelled Solana’s DEX trading volume beyond that of Ethereum on numerous occasions in recent months.

“Solana is insanely congested right now and still broke a record in all-time DEX volume stoked to see what we can achieve once the network is functioning better,” Mert Mumtaz, the CEO of Helius Labs chimed.

Of particular interest are the top three frontrunners among Solana’s DEX platforms. Orca leads with $1.64 billion in trading volume over the past 24-hour period, followed by Raydium at $867 million and Lifinity at $679 million.

Meanwhile, the total value of assets locked on the Solana network is also at a two-year high of almost $4 billion. DeFi analyst Patrick Scott pointed out an interesting fact. Solana DeFi TVL, including liquid staking, flipped the Binance Smart Chain (BSC) for the first time during the past day.

“In 2023, Solana DeFi was declared dead. Since then, its TVL is up 18x. And yesterday, Solana just flipped Ethereum in daily stablecoin transfer volume. That’s quite a turnaround,” prominent crypto influencer Lark Davis stated.

Solana TVL
Solana Vs. BSC TVL (Source: Patrick Scott)

In addition, the network has seen a notable increase in the creation of new Solana Public Library (SPL) tokens. Over the past week, an average of over 7,800 SPL tokens were minted daily on the Solana network. On March 11, this figure peaked at 9,690 tokens, setting a new single-day record, according to Solscan data.

Read more: 6 Best Platforms To Buy Solana (SOL) in 2024

All these milestones reflect Solana’s ascending trajectory within the DeFi ecosystem. This positions it as a formidable contender against Ethereum’s enduring sector dominance.

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Oluwapelumi Adejumo
Oluwapelumi Adejumo is a journalist at BeInCrypto, where he reports on a broad range of topics including Bitcoin, crypto exchange-traded funds (ETFs), market trends, regulatory shifts, technological advancements in digital assets, decentralized finance (DeFi), blockchain scalability, and the tokenomics of emerging altcoins. With over three years of experience in the industry, his works have been featured in major crypto media outlets such as CryptoSlate, Coinspeaker, FXEmpire, and Bitcoin...
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