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Solana DeFi On A 3-Day $5B Trading Volume Streak, Raydium and Orca Caused Most of the Spike

Solana DeFi On A 3-Day $5B Trading Volume Streak, Raydium and Orca Caused Most of the Spike

Nov, 15 2024 8:50
Solana DeFi On A 3-Day $5B Trading Volume Streak, Raydium and Orca Caused Most of the Spike

As the crypto market continues, a week after Donald Trump's win in the US election, the decentralised finance (DeFi) of Solana (SOL) witnessed a massive resurgence.

DeFiLlama revealed that Solana's decentralised exchanges (DEXs) touched a milestone this week as it went past $5 billion trading volume for 3 consecutive days. This is the first time SOL has achieved such a feat.

The total trading volume of Solana DEXs hit $16 billion in the November 10-16 week with most of it coming from the Raydium platform. This leading Solana DEX made up more than 62% of the total trading volume this week.

This was followed by Orca which accounted for 22.2% of the Solana DEXs trading volume. The third and the fourth positions were taken by Lifinity and Phoenix capturing 6.96% and 4.92% trading volume respectively.

Furthermore, a report from Syncracy Capital underlined how the Solana blockchain is catching up with Ethereum as SOL’s market share grew significantly in 2024.

The real economic value (REV) of the Solana network rose to 111% of Ethereum's last month. This is a stark contrast from the 1% increase seen last year. This spike in REV can be attributed to the MEV tips and the transaction fees of the network.

Another key metrics is the total application revenue (TAR) of Solana grew to hot 109% of ETH’s TAR which shows the sike in fees generated from applications on the blockchain.

Analysts are saying it is clear that Solana is eating Ethereum's market share. There's enough data from the last 12 months to acknowledge that, as the cyclical tailwinds strengthened SOL’s position in retail financial activity.

The report further added that Solana is driven by a surge in on-chain activity as meme coin trading became its core feature as users seek alternatives to traditional venture-backed assets and high-valued tokens.

As per the Syncracy Capital report, this makes it the ideal time for developers to cash in and build on Solana. Pump.fun recently became the fastest-growing crypto app as its revenue touched $100 million in just 217 days with an annual revenue run rate of $348 million.

The DePIN sector of the Solana blockchain has grown significantly by crowdsourcing infrastructure costs. Moreover, the network became more efficient and scalable by using on-chain settlement.

This has led to most DePIN projects like Hivemapper mapping 28% of global roads at an economical cost. Meanwhile, projects like Helium which has 20,000 devices on the network helping US carriers, show the DePIN sector’s impact.

As of November 15 morning, SOL was trading at $209.22, up 4.10% in the last 24 hours along with a 31.65% decline in its trading volume which touched $7.37 billion. The market cap has also decreased by more than 4% to reach $99.05 billion.

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