The transaction volume of Solana DEX has been accompanied by a sharp increase in weekly active addresses, and on-chain activities have also reached an unprecedented level of enthusiasm. It was even compared with the current Ethereum. However, it will take more time to clarify whether Solana's current momentum will continue or is just a temporary phenomenon caused by the speculative frenzy.
(DEX vs. CEX market share surge, Solana Foundation: DeFi development speed is “unprecedented”)
Solana on-chain activity grows significantly
In the past few months, Solana has seen significant growth in the number of on-chain transactions and daily active addresses, with the former reaching 43.38 million.
The latter even exceeded the 2 million mark for the first time a few days ago.
DEX becomes the most outstanding product on Solana
From a transaction volume perspective, you will find that the Solana network’s main fee income comes from its decentralized exchange (DEX).
Raydium
First of all, Raydium, as a major fee income generator, has reached a record high of $30 billion in transaction volume in July after a large influx of users, making it the second largest DEX currently after Uniswap.
The agreement generated more than $65 million in transaction fees in July, nearly double the $33 million in June.
Pump.Fun
In addition, as the meme currency craze and demand grow, Pump.Fun, as a meme currency launch platform, has tens of thousands of new tokens launched on the platform every week.
It is reported that the platform has created more than 1.5 million meme coins since its launch in March 2024.
Throughout July, Pump.Fun generated more than $28 million in transaction fees, the highest monthly revenue since the launch of the platform.
Victory
In addition, Jito, the largest liquidity staking platform on Solana (similar to Lido on Ethereum) and the largest third-party client on the network, also delivered impressive results.
Maximum Extractable Value (MEV) fees collected by network validators using the Jito client reached approximately $36 million in July, a 26% increase compared to the previous month.
This number has grown steadily in the past six months, and on July 28, it created a whopping $3.19 million in fees, which is currently the highest MEV fee on Solana.
Is Solana about to catch up with Ethereum?
Even though the transaction volume and other data on Solana have been impressive recently, judging from the lower fees and faster transaction processing speed, they are gradually shaking the dominance of the current L1 leader Ethereum.
However, behind Solana’s eye-catching data, there are still many things worth thinking about:
Token quality and durability: A large number of new coins are released on Solana every day. If most projects are issued based on hype motives or scams, at best it only means that Solana’s network quality is very good and can handle thousands of people at the same time. Thousands of transactions, but more of them just increase the source of market chaos rather than real value.
Wash trading risk: Data is variable, and many protocols provide incentives to allow users to help them deliver beautiful ecological transcripts, not to mention the possibility of wash trading or other exaggerated trading volume behavior in some DEXs.
Indicators will not be the only basis for judgment: different blockchain indicators can depict different network health and adoption. Even though DEX trading volume is indeed a valuable indicator, it does not necessarily reflect the entire Solana ecosystem. The full picture or long-term sustainability also requires the amount of developer activity, the number of successful cases, and practical applications.
Solana’s DEX trading volume advantage does exist, but it will take more time to clarify whether this trend will continue or whether it is just a temporary phenomenon driven by a speculative frenzy.
This article sees a surge in activity on the Solana chain. Is it a temporary speculative boom or an upcoming L1-dominated trend? First appeared in Chain News ABMedia.
