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Solana’s decentralized exchange (DEX) ecosystem has broken a record with its weekly trading volume reaching 168% of Ethereum’s mainnet. This major shift comes from a period when Solana’s DEX volume was only 48.85% at the beginning of the year. This metric is considered a key indicator of relative trading activity between the Solana and Ethereum networks.
In October, Solana’s largest DEX platform, Raydium, reached $22.3 billion in trading volume, while Uniswap on Ethereum maintained its leading position with $38 billion in volume. Raydium managed to increase its market share from 7.6% at the beginning of the year to 18.4%. While Uniswap remains the most traded DEX in the Ethereum ecosystem, Solana is showing a strong increase in market share thanks to Raydium’s rapid rise.
Raydium is particularly notable for its high-frequency trading of new tokens. This is supported by the rise of pump.fun tokens, which make up a significant portion of the DEX volume on Solana. Recently, an AI bot called Truth Terminal launched various tokens on Solana, generating interest on social media and increasing on-chain activity.
Solana’s DEX volume surpassing Ethereum’s mainnet is seen as a significant development; however, Ethereum’s total DEX ecosystem includes Layer 2 solutions as well as the mainnet. As Layer 2s grow in popularity, Ethereum could have a greater impact on total DEX volume and reshape the volume balance between Solana and Ethereum.
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Furthermore, the nature of trading activity on both chains is also different. Raydium focuses mostly on trading newly released tokens, while Uniswap trades more established token pairs. These differences suggest that the two chains are addressing different market needs rather than competing directly with each other.
While this increase in volume is an impressive milestone for Solana, it is important to note that raw volume metrics do not fully reflect the overall health or long-term sustainability of ecosystems.
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