Solana has made a significant stride, establishing itself as the blockchain in the highest demand and on track to reach its peak monthly DEX volume in December 2023. Surpassing Arbitrum (ARB), Solana (SOL), has solidified its standing as the second-largest blockchain based on decentralized exchange (DEX) volumes within the past 24 hours.
DeFiLlama’s data reveals that Solana-based DEXes recorded trades valued at over $912 million, outpacing Arbitrum’s $721 million trading activity. Meanwhile, Ethereum [ETH] remains the market leader, boasting transactions exceeding $1 billion.
Over the past seven days, SOL has witnessed a remarkable 81% increase in DEX volumes, exceeding $6 billion. This surge follows a period of subdued activity in 2023, with average monthly volumes fluctuating between $1 billion and $1.8 billion. November marked a significant turning point, with deals worth $7.4 billion, and December is on track to potentially becoming the most productive month for Solana DEX volumes.
Solana’s Leading Liquidity Providers Drive Unprecedented Surge
Major liquidity providers on the SOL network have played a pivotal role in this surge. Orca, leading the way, settled $2.2 billion on its platform in the past week, representing a 93% jump from the previous 7-day period. Raydium, the second-largest DEX on Solana, witnessed volumes exceeding $1.5 billion in the same period.
In addition to the heightened activity on its DEXes, the Solana network has experienced substantial growth in the USD value of cryptocurrencies locked in its DeFi projects. According to DeFiLlama’s data, the total value locked (TVL) has more than doubled since mid-October, showcasing a monthly gain of nearly 45%, second only to Avalanche (AVAX).
A remarkable performance in the price charts has further bolstered Solana’s DeFi prospects. The native coin SOL has surged by 261% since the mid-October rally, reclaiming pre-bear market levels of 2022, as per CoinMarketCap.
This impressive turnaround in spot price has captured the attention of derivatives traders, with analysis of Coinglass data revealing that capital invested in active SOL futures contracts has more than tripled, mirroring the upward trajectory of the coin’s price.