Raydium, the largest automated market maker (AMM) on Solana, has managed to overtake Uniswap as the top platform by monthly trading volume.
A recent report from Messari reveals that Raydium recorded $124.6 billion in DEX volume in November 2024, surpassing Uniswap’s $90.5 billion by 30%. This feat reflects the rapid rise of the Solana ecosystem and the growing prominence of memecoin trading.
Raydium's rise to the top
In November, Raydium captured over 60% of daily DEX volume within the Solana ecosystem. This dominance reflects the platform’s ability to capitalize on Solana’s high processing power and low transaction costs. These principles appeal to users seeking an efficient and cost-effective decentralized finance (DeFi) experience.
According to the research, October 2024 was the first month that Raydium topped the global DEX rankings, a trend that accelerated in November. This growth is part of a broader shift in the DeFi space, where Solana’s daily DEX volume has consistently outpaced Ethereum’s since early October 2024. In November, Solana accounted for nearly 50% of monthly DEX volume across all blockchains, compared to Ethereum’s 18%.
Solana vs. Raydium. Fonte: Messari
Raydium stands out as memecoins surge
A key factor in Raydium’s success has been the explosive growth in memecoin trading. In November 2024, memecoins accounted for 65% of Raydium’s total monthly trading volume, a record for the platform.
This surge was particularly sharp following the US presidential election on November 5. During that period, daily memecoin trading on Raydium averaged nearly $2 billion, nearly triple the pre-election average.
Raydium’s synergy with Pump.fun, a memecoin launchpad on Solana, has been instrumental in this growth. Pump.fun’s model injects liquidity into Raydium’s AMM pools once a token reaches a certain market cap, ensuring a steady stream of new trading opportunities. This innovative approach has made Raydium the go-to platform for memecoin enthusiasts.
Raydium’s rise to the top of the DEX rankings is also a result of strategic upgrades. The launch of its V3 interface in March 2024 introduced a number of user-friendly features. Some of these include a portfolio management page, consolidated liquidity pools, and advanced trading tools such as token pair charts and exact swap options.
These improvements, along with revamped Constant Product Market Maker (CPMM) pools that support the Token-2022 program, have improved the usability and performance of the platform.
Solana Ecosystem Expansion
Liquidity providers on Raydium benefit from trading fees and rewards in RAY, the platform’s native token. The ability to stake RAY for additional rewards further incentivizes participation and fosters user loyalty.
Meanwhile, Raydium’s success reflects the broader growth of Solana’s DeFi ecosystem. Solana’s technical advantages, including its ability to handle high transaction volumes at low costs, have attracted users and liquidity from Ethereum. In the third quarter (Q3) of 2024, Solana’s weekly DEX volumes surpassed Ethereum’s three times.
This momentum continued into Q4, with Solana consistently outperforming Ethereum in daily DEX volumes. The network’s ability to process transactions quickly and affordably made it particularly attractive for high-frequency trading and smaller transactions, which are often cost-prohibitive on Ethereum.
Raydium’s meteoric rise is evidence of its strategic positioning and the growth of the Solana ecosystem. However, it also highlights the risks and opportunities in the changing DEX market.
The rise in memecoin trading, while lucrative, introduces volatility and potential regulatory scrutiny. Furthermore, as competition among DEXs intensifies, maintaining user engagement and liquidity will require continued innovation.
The article Memecoin surge sees Raydium outperform Uniswap appeared first on BeInCrypto.
