The Solana community outpaced Ethereum in month-to-month decentralized trade (DEX) volume in July, in keeping with DefiLlama information.
Solana’s DEX transactions reached $55.8 billion, surpassing Ethereum’s $53.8 billion for a similar interval. This represents Solana’s second-highest month-to-month volume, following March 2024’s peak of $60.7 billion.
Solana’s volume spike is especially as a consequence of exercise on platforms like Raydium, Orca, and Phoenix. In distinction, Ethereum’s volume is predominantly pushed by the Uniswap trade.
Regardless of these figures, Ethereum stays the main DeFi platform, holding roughly 61% of the market and locking $67 billion in property. As compared, Solana instructions solely 4.64% of the market, with a complete worth locked (TVL) of $5.16 billion.
What’s driving Solana’s progress?
Analysts level to an increase in memecoin exercise as a key driver behind Solana’s elevated DEX volume.
Over the previous yr, the blockchain has skilled important progress in varied memecoins, from cat-themed to politically impressed tokens. This has led to elevated liquidity as merchants look to capitalize on these property.
Institutional endorsements have additionally fueled curiosity in Solana, and hypothesis a couple of potential Solana exchange-traded fund (ETF) might have contributed to its progress. In June, outstanding asset administration companies VanEck and 21Shares utilized with the US Securities and Trade Fee (SEC) to create a spot-based Solana ETF.
Additional, market analysts have famous elevated utilization of stablecoins on Solana. Data from Allium on Visa’s stablecoin dashboard exhibits that the transaction volume for the USDC stablecoin on Solana has exceeded $8 trillion for the reason that starting of final yr, with USDT on the Tron blockchain following at $6.5 trillion.
Wash-trading concerns
In the meantime, Solana’s current surge in DEX trading has raised concerns about potential wash trading. A current report by the pseudonymous crypto analyst Flip Analysis claims that 93% of transactions on the blockchain are inorganic.
The report signifies that Solana’s every day transactions are closely influenced by wash trading, MEV bots, and scams, which supply minimal worth to retail merchants. Flip Analysis famous:
“Looking at the wallets involved, the vast majority seem to be bots in the same network with tens of thousands of transactions. They generate fake volumes independently, with random amounts of SOL and a random no. of transactions until the project rugs, before moving onto the next one.”
Talked about on this article
