Raydium Flips Ethereum in 24-Hour Fee Generation - Bullish for $RAY?

Raydium, Solana’s leading decentralized exchange (DEX) by trading volume, has surpassed the industry’s blockchains in 24-hour fee generation. 

Trading volumes on the platform have surged to over $1.39B, driven by a resurgence of memecoin mania in onchain markets.

$RAY, the exchange’s native asset, stands to be one of the biggest benefactors of the platform’s burgeoning popularity. With Raydium’s platform fees skyrocketing to yearly highs, how will Raydium’s buyback mechanic drive value to $RAY? 

Raydium Generates 160% More Fees Than UniSwap

Generating over $3.41M in fees over the last 24 hours, Raydium has outperformed crypto’s top Layer-1s in fees, including Ethereum, Tron, and the Solana network itself, based on DefiLlama data. 

Raydium’s explosive fee generation suggests that the platform offers some of the industry’s best value-creation opportunities, with liquidity providers reaping the benefits of dynamic, high-volume market conditions.

On top of surpassing Ethereum, crypto’s biggest Layer-1, Raydium has also generated over 160% more fees than Uniswap, a multichain DEX often regarded as the quintessential DeFi app.

Raydium’s surging volumes and fee generation indicate that the platform is becoming the biggest onchain trading platform in the space, despite only servicing one blockchain. Uniswap, on the other hand, now supports 26 different networks, including a combination of Ethereum Layer-2s and rival Layer-1s. 

$96.3M $RAY Bought Back

In a bid to drive continued value to the $RAY token, a percentage of collected trading fees are used to programmatically buy $RAY off the open market. 

This sustainable buy pressure has helped $RAY maintain consistent value throughout the year, netting $RAY a 94% price appreciation YTD based on Step Finance data.

Based on Raydium data collected throughout October, Raydium’s buyback mechanism has already purchased over 2.6M $RAY, currently valued at over $5.2M.

 

Since the launch of the protocol, over 38M $RAY ($96M) has been bought off the open market in this manner. The purchased $RAY is held in Raydium’s designated buyback wallet.

With Uptober now in full swing and much of the crypto community anticipating a bullish Q4 with high onchain trading volumes, Raydium is expected to continue purchasing over 100k $RAY per day. 

Solana Eclipses Ethereum + L2 DEX Volume

Solana’s Q4 DEX trading resurgance has further established the netowrk’s claim to DeFi dominance. When Solana flipped Ethereum in monthly DEX trading volume in July, Ethereum supporters were quick to highlight that analysts need to also factor in Ethereum Layer-2 trading volume when comparing the networks.

On October 20, the Solana network recorded over $1.669B in DEX trading volume, based on DefiLlama data. During this 24-hour period, Solana’s DEX trading volume exceeded that of not only Ethereum, but all it’s supporting Layer-2 blockchains.

Multicoin Capital Managing Partner Kyle Samani used the opportunity to provoke Solana detractors, demanding whether or not Ethereum maxis wanted to “move the goal posts again?”

While a resurgence of trading volume on Layer-2s has reinforced the ETH + L2 argument, Solana's DEX trading dominance has been rising all year. As confidence returns to markets, network participants anticipate that Solana will remain DEX trader’s network of choice.

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