Solana DeFi Breaks More Records, Achieving New All-Time Highs in DEX and Perpetual Trading Volumes

Amidst chaotic market dynamics, Solana achieved a significant milestone. Facilitating over $4B in DEX volume and $1.78B in Perps volume, Solana DeFi broke two records in two days.

Finn Miller

Published: Aug 7, 2024 at 16:00
Edited: Aug 7, 2024 at 16:17

Solana DeFi continues its historic year, breaking multiple records in the space of a week. After flipping Ethereum in monthly DEX volume for the first time in history, Solana also recorded its highest 24-hour DEX volume and daily perpetual trade volume.

Solana Records $4B in 24-Hour DEX Trading Volume

Monday’s market opening spelled disaster in the world of traditional finance, with widespread panic causing one of the biggest crashes in recent memory. Capitulating under recession fears, conflict in the Middle East, and Japan’s worst stock market crash since 1927, financial markets across the globe imploded.

Proving that they’re yet to decouple from traditional markets, crypto assets suffered devastating drawdowns. Spurred on by Jump Crypto’s vicious selling behavior, thousands of traders rushed to decentralized exchanges in a desperate race to liquidate their assets, resulting in record-breaking trade volumes on the Solana network.

Over a 24-hour period, Solana DEX volumes surged to over $4B, notching a new all-time high in 24-hour volume. This is not to be confused with daily volume, the all-time high of which was recorded at $3.8B on March 15th, 2024.

Among Solana DEX platforms, Orca handled the bulk of trading activity, accounting for 41.49% of the network’s total DEX volume based on DeFiLlama data.

However, despite recently surpassing the Ethereum Layer 1 in monthly DEX volume, the original smart contract platform briefly reclaimed its title as the leading network for DEX trading.

On August 5, Ethereum witnessed over $5B in DEX trading volume, but the surge of activity came at a cost. Gas wars erupted on the network, spiking gas fees as high as $600 per transaction.

Jupiter Leads Charge As Perpetual Volume Hits All-Time High

As if record-breaking spot DEX volumes weren’t enough, the catastrophic event also served as a backdrop for another Solana DeFi record.

On August 4th, Solana also recorded a new all-time high of $1.78B in daily perpetual trading volume, with thousands of traders leveraging market volatility in search of profits.

Solidifying its position as the leading perpetual DEX in the ecosystem, Jupiter facilitated the majority of Solana’s perpetual trading activity. Based on DeFiLlama data, Jupiter accounted for 45.95% of all perpetual market share on August 4, recording over $818M in trade volume.

Arguably, this should’ve been a boon for Jupiter’s liquidity providers. JLP holders have enjoyed a significant yield boost, with 75% of all fees generated by Jupiter’s perpetual exchange being used to support the JLP token. Following heightened volatility, JLP yield has jumped to over 106% APY.

An indexed basket of assets, the JLP token has enjoyed a powerful bounce as market conditions improve. After forming a local bottom at $2.77, JLP has climbed 14.4% and is currently exchanging hands at $3.17 based on Step Finance data.

With Solana reclaiming $150, crypto traders are eager to put the week’s wild market dynamics behind them. However, despite Solana’s strong recovery, lingering recession fears and poor macroeconomic conditions suggest that crypto markets are not out of the woods just yet.