Solana’s DeFi activity surged, with its DEX Volume surpassing $100 billion in monthly trading volume, outpacing Ethereum. The SOL token hit a new all-time high of $263, rebounding from its $8 low during the FTX collapse.
The decentralized finance (DeFi) activity of Solana (SOL) has experienced substantial growth, with its decentralized exchanges (DEX) surpassing Ethereum (ETH) DEX in terms of monthly trading volume. A significant milestone for the ecosystem has been achieved by Solana-based DEXes, which have registered over $100 billion in trading volume thus far in November.
The Solana DeFi Ecosystem is gaining momentum and surpassing Ethereum DeFi.
Solana, the fourth-largest cryptocurrency with a reported market capitalization of $118.34 billion, has been on a price trajectory that has shattered records. The digital asset has recently reached a new all-time high (ATH) of $263, following a low of $8 at the apex of the FTX fiasco.
Currently, the layer-1 blockchain has reached another significant milestone by surpassing $100 billion in monthly trading volume for the first time, as Solana-based DEXes. The 30-day cumulative trading volume of Solana DEXes is $116.51 billion, as per data from DefiLlama.
In contrast, Ethereum mainnet-based DEXes experienced a transaction volume of $61.61 billion during the same time frame. This implies that the transaction volume of Solana’s DEX was more than double that of Ethereum.
Solana’s DEX volume increased by more than 100% from October, at $52.5 billion, on a month-over-month (MoM) basis. In the interim, the total value locked (TVL) in Solana’s DeFi ecosystem has increased to $9.30 billion, a significant increase from the $6.23 billion it was a month ago.
Several factors have contributed to the unprecedented increase in the trading volume of Solana-based DEXs. These consist of the blockchain’s low transaction fees, the ongoing memecoin mania, and an intuitive user interface.
It is important to note that Solana’s TVL has not yet surpassed its ATH TVL of $10.02 billion, which was recorded in November 2021, nearly three years ago. In January 2023, the blockchain’s TVL reached a nadir of $210 million, which was further exacerbated by the widespread crypto bear market and the collapse of the FTX exchange.
Jupiter DEX contains $2.4 billion, while Solana’s TVL is $3.58 billion and tied to the liquid staking protocol Jito at the time of writing. Raydium, another prominent Solana-based DEX, is responsible for $2.37 billion of TVL.
What is the future of SOL?
The recovery of its native token, SOL, has been significantly influenced by the increasing adoption of Solana by its users. SOL has experienced a year-to-date (YTD) increase of over 157%, from $101 on January 1 to $263 on November 23.
Crypto experts anticipate that SOL will continue to experience additional gains, despite the extraordinary returns. Titan of Crypto’s most recent analysis indicates that SOL may surpass $400, as it appears to be emerging from a protracted cup-and-handle pattern.
Additional bullish factors, including the increasing probability of a Solana exchange-traded fund (ETF) and the decreasing dominance of Bitcoin (BTC), could further propel SOL to new highs. At the time of publication, SOL is trading at $248.31, representing a 0.5% increase in the previous 24 hours.
