Solana DEX Monthly Trading Volume Exceeds $100 Billion, Surpassing Ethereum
Solana (SOL) decentralized finance (DeFi) activity has surged, with its decentralized exchanges (DEX) exceeding Ethereum (ETH) DEX in monthly trading volume. In November, Solana-based DEXes recorded over $100 billion in trading volume, marking a significant milestone.
Solana DeFi Ecosystem Gains Momentum, Outshines Ethereum DeFi
Solana ranks as the fourth-largest cryptocurrency with a market cap of $118.34 billion and recently reached an all-time high (ATH) of $263, recovering from a low of $8 during the FTX crisis.
Solana DEXes achieved a cumulative trading volume of $116.51 billion in 30 days, according to DefiLlama. In comparison, Ethereum's mainnet DEXes recorded $61.61 billion during the same period, indicating that Solana’s DEX trading volume was more than double that of Ethereum.
Month-over-month (MoM), Solana's DEX volume increased over 100% from October's $52.5 billion. The total value locked (TVL) in Solana's DeFi ecosystem rose to $9.30 billion from $6.23 billion last month.
Factors contributing to the rise in Solana DEX trading volume include the memecoin trend, low transaction fees, and user-friendly interfaces. However, Solana’s TVL has not yet surpassed its ATH of $10.02 billion recorded in November 2021. It hit a low of $210 million in January 2023 due to the broader crypto bear market influenced by the FTX collapse.
Currently, $3.58 billion of Solana's TVL is associated with the liquid staking protocol Jito, while Jupiter DEX holds $2.4 billion, and Raydium accounts for $2.37 billion.
Where Is SOL Headed?
The increase in user adoption has significantly contributed to the recovery of SOL. Year-to-date (YTD), SOL has risen over 157%, increasing from $101 on January 1 to $263 on November 23.
Despite these gains, analysts remain optimistic about SOL's future. According to Titan of Crypto, SOL could reach $400 as it appears to be breaking out from a cup-and-handle pattern. Additional bullish factors include declining Bitcoin (BTC) dominance and the potential approval of a Solana exchange-traded fund (ETF). At press time, SOL trades at $248.31, up 0.5% in the past 24 hours.
