DeFi
Solana accounts for a fifth of DEX volume, but a new competitor could catch up – DL News
- Solana accounts for 25% of the total trading volume on decentralized exchanges.
- The network’s DEX market share has increased by almost 50% since the start of the year.
- Memecoin trading has propelled DEX trading activity on Solana.
Only Ethereum accounts for a larger share of trading volume on decentralized exchanges than Solana.
Last month, Solana captured 25% of the $179 billion value of crypto trading on DEX, while Ethereum controlled 31%, data DefiLlama broadcasts. At the start of the year, Solana’s share was 16%, and Ethereum’s share was still 31%.
In a report Published on Tuesday, crypto hedge fund Pantera Capital said the increase in share came from retail traders speculating on memecoins. They are attracted to Solana by its low transaction fees.
Trading activity on Solana represents a fifth of total DEX volume
From dog and cat themed tokens to so-called political memecoins ― tokens inspired by political figures ― Solana saw an influx of liquidity of traders are looking to make bank with these viral cryptocurrencies.
Solana accounts for 85% of all new tokens traded on DEXs year-to-date, another sign that memecoin volume is increasing.
As a result, Pantera said Phantom, a Solana wallet used to connect to DEXs on the network, has become the most dominant app on the iOS store.
“For a crypto wallet to become the most downloaded app in the entire US App Store is a remarkable achievement, a testament to Solana’s massive mainstream adoption,” Pantera said in its report . “This retail influx is closely linked to the boom in memecoin trading on Solana DEXs.”
Basic earnings
While Solana’s growth in DEX volume share is significant, competing networks are gaining momentum.
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Base, a layer 2 Ethereum blockchain launched by crypto exchange Coinbase, is also gain market shares thanks in large part to its low transaction fees.
Last month, asset manager Franklin Templeton predicted that Base would control a significant share of user activity among rival Ethereum layer 2 networks.
Osato Avan-Nomayo is our DeFi correspondent based in Nigeria. He covers DeFi and technology. To share tips or story information, please contact him at osato@dlnews.com.