According to DefiLlama’s data, Solana outpaced Ethereum for the monthly volume of decentralized exchanges (DEXs) in July.
Solana DEX transactions surpassed Ethereum at $53.8 billion during the same time period. Solana now has its second-highest volume monthly, after the peak in March 2024 of $60.7 Billion.
Solana’s volume The spike in activity is due primarily to platforms such as Orca and Phoenix. Ethereum volume, on the other hand, is primarily driven by Uniswap.
Ethereum is still the most popular DeFi platform despite these numbers. It holds approximately 61% market share and has locked $67 billion worth of assets. Solana, on the other hand, commands just 4.64%, and has a TVL of $5.16 Billion.
What’s driving Solana’s rapid growth?
Analysts have noted a significant increase in memecoin activity As a major driver of Solana’s increased DEX volumes.
In the last year, there has been a significant increase in the number of memecoins. These tokens range from those with a cat theme to political ones. The increased demand for these tokens has resulted in an increase of liquidity.
Solana’s growth has also been boosted by institutional support and speculation over a Solana ETF. VanEck, a prominent asset manager firm, and 21Shares launched their respective funds in June. applied With the US Securities and Exchange Commission, we created a Solana ETF based on spot prices.
Analysts have also noted an increase in the number of market participants. usage of stablecoins Solana. Data Allium’s dashboard for Visa stablecoins shows USDC on Solana at $8 trillion in transaction volume since January of this year. USDT on Tron follows with $6.5 trillion.
Concerns about wash-trading
The recent rise in DEX trading by Solana has also raised questions about possible wash trading. The recent spate of wash trading has raised concern. report Flip Research is a pseudonymous cryptocurrency analyst who claims that 93% transactions on blockchains are non-organic.
Report indicates that Solana’s transactions daily are heavily affected by MEV bots (wash trading), scams and wash trading. Retail traders receive little benefit from these activities. Flip Research reported:
“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.”
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Source: cryptoslate.com