There’s no denying that Solana has seen impressive growth in the last couple of months. It became the second-largest blockchain in terms of decentralized exchange (DEX) volumes, surpassing Arbitrum. Solana-based DEXes have experienced a staggering 81% increase in trading volumes within just 24 hours, showcasing the platform’s growing popularity and demand among crypto enthusiasts.
Solana Surpasses Arbitrum in DEX Volumes
Recent data analysis, based on DeFiLlama’s metrics, reveals that Solana’s DEXes recorded trades valued at over $912 million in the past day. This surpasses the trading activity on Arbitrum, which reported transactions worth $721 million during the same period. Solana’s rise to the second position clearly shows the blockchain’s appeal for decentralized financial activities.
Explosive Growth in Weekly and Monthly Volumes
The surge in Solana’s DEX volumes isn’t just a one-time occurrence. Over the past seven days, the platform has witnessed an extraordinary 81% increase, with volumes exceeding an impressive $6 billion. Notably, November marked a pivotal moment for Solana, with transaction values hitting $7.4 billion.
Major liquidity providers on the Solana network have played a pivotal role in fueling this surge. Orca, for instance, settled an astonishing $2.2 billion on its platform over the past week, reflecting a remarkable 93% increase from the previous seven-day period. Raydium, the second-largest DEX on Solana, also made significant contributions, with volumes exceeding $1.5 billion in the past week.
Total Value Locked (TVL) and SOL’s Massive Increase
Beyond the bustling activity on its DEXes, Solana has experienced a sharp increase in the value of currencies locked in its DeFi projects. According to DeFiLlama’s data, the TVL on the network has more than doubled since mid-October, showing a 45% monthly gain, second only to Avalanche.
The SOL token has been a crucial driver of this success story. With a remarkable 261% surge since the mid-October rally, SOL has reclaimed pre-bear market levels from 2022, according to CoinMarketCap. This led to an increased interest both from investors and derivatives traders.
The Road Ahead for Solana
As Solana continues to solidify its position as a major player in the crypto space, the recent surge in DEX volumes, coupled with explosive growth in total value locked and SOL’s remarkable price performance, paints a bullish picture for the blockchain. The platform’s resilience and increasing appeal to traders and liquidity providers position it is something not a lot of projects can do. This makes Solana one of the most dangerous protocols out there, and it’s definitely worth keeping an eye on it.