Solana flips Ethereum on this front, thanks to the memecoins

• There was a big rally in DEX exercise on Solana prior to now few months.
• That is as a result of surge within the exercise across the meme cash on the community.

Solana’s [SOL] share of the whole decentralized trade (DEX) quantity has grown considerably over the previous yr. In a recent post on X (previously Twitter), crypto analyst Tom Wan famous that Solana presently holds 29% of the DEX market, in comparison with Ethereum’s [ETH] 36%.

A yr in the past, Solana solely had a 1.1% market share, whereas Ethereum dominated with 50%- 70%.

The expansion in buying and selling exercise throughout DEXes housed inside Solana is attributed to the present memecoin frenzy on the community. This increase started following Pyth Community and Jupiter’s giant airdrops, which led to the discharge of tokens value round $290 million to Solana’s customers. 

New token creation on the community skyrocketed to all-time highs, pushed primarily by meme-based property. As buying and selling exercise intensified, the values of Solana-based meme cash, similar to dogwifhat [WIF] and Bonk [BONK], climbed to new all-time highs. 

DEXes are the popular platforms for buying and selling property of this nature as a result of centralized exchanges typically delay their listings resulting from their considerably unstable nature; therefore, the current progress in exercise throughout Solana-based DEXes as many attempt to money in on the present meme coin market rally.

In accordance with Dexscreener information, eight of the highest ten buying and selling pairs are meme cash paired with SOL. 

State of Solana

The current hike in Solana’s DEX exercise has led to an uptick within the chain’s decentralized finance (DeFi) whole worth locked (TVL). 

At press time, Solana’s TVL was $2.90 billion. DefiLlama’s information reveals it has risen by 89% year-to-date (YTD). At its present worth, the community’s TVL is at a 21-month excessive, AMBCrypto discovered.

Regardless of the excessive DEX quantity within the final month, Solana has seen a common decline in consumer exercise through the previous few weeks. Information from Artemis revealed a 21% drop within the every day depend of distinctive pockets addresses signing on-chain transactions on Solana since thirty first January.

This decline in demand has led to a corresponding lower in community charges and income. Per Artemis’ information, the whole worth of every day transaction charges has plummeted by 46% since 1st February.

How a lot are 1,10,100 SOLs value at the moment?

For context, firstly of February, transaction charges on Solana totaled $1.2 million. Nonetheless, as of 5 March, the chain noticed a complete charge of $627,000.

Solana’s income from these charges has witnessed a decline as nicely. As of the fifth of March, income derived from transaction charges amounted to $313,000. This additionally marked a 46% decline from the $584,000 recorded in every day income on the first of February.