Solana Threatens to Flip Ethereum Monthly DEX Volume For the First Time Ever

Already leading the crypto industry in terms of daily active users and transactions, Solana’s burgeoning DeFi ecosystem has been making its presence felt in the wider market. After surpassing rival Ethereum in daily DEX volume, Solana has also claimed the monthly crown. 

The network’s meteoric DeFi growth begs the question: Will Solana finally flip Ethereum monthly DEX volume for the first time?

Solana Leads DEX Volumes Across all Chains

Over the past two months, Solana has often dominated daily DEX volume across blockchains. However, having held the pole position for four consecutive days and now commanding the top spot in weekly volume, Solana is solidifying its position as the leading chain for decentralized trading, based on DefiLlama data.

Solana’s newfound dominance goes beyond a mere rivalry with former kingpin Ethereum. According to DefiLlama, Solana’s top DEX by volume Raydium has also eclipsed Uniswap trade volume across all 11 integrated chains.

These milestones are not isolated incidents. Throughout H1, Solana’s DEX volume and market share have consistently grown. Since January, Solana’s DEX volume has steadily siphoned dominance away from competitors. 

Surpassing the Binance Smart Chain, Arbitrum, and finally Ethereum, Solana’s market share (shown in red) has grown from 12.34% to a staggering 29.07 in the first week of July, according to DefiLlama.

According to other data sources, Solana seized the top spot even earlier. Based on Dune Analytics data, Solana led all chains in weekly DEX volume throughout June, maintaining this position in the first week of July.

Inflows from Ethereum

Not only has Solana led DEX volume across all chains, but DeFi traders in other ecosystems are eager to join in the action. Over the past 30 days, deBridge data indicates that Solana has witnessed greater net inflows than rival networks.

According to deBridge, over $85.5M has been transferred from Ethereum to Solana. Conversely, only $62M has flown in the opposite direction, meaning that Solana-Ethereum net inflows favor the Solana network to the value of $23.5M.

Stablecoin inflows have also been net-positive. Based on Step Finance data, the total market cap of Solana stablecoins sits at just over $4.7B, with USDC encapsulating 59.57% market share.

Pump.fun, Solana’s Unlikely DeFi Catalyst

Solana’s dramatic rise to DeFi supremacy has been largely supported by an unexpected contributor. Pump.fun, the popular no-code token launcher, reignited meme coin trading activity on the network when it first launched in January. 

After facilitating the launch of over 1M tokens on Solana, the application recently flipped Ethereum in daily revenue, briefly becoming the most valuable crypto app in the industry.

Pump.fun’s rise to prominence has reinvented Solana’s Defi landscape. Before the introduction of the protocol, Orca routinely commanded over 40% of DEX market share. 

Pump.fun token launches that reach their $69,000 bonding curve have their liquidity automatically migrated to Raydium.  Off the back of pump.fun’s rampant success, Raydium has reclaimed Solana DEX market share and grown to become the largest DEX by trading volume in the entire crypto market.

Will Solana Continue its Dominance in July?

In the grip of a fierce battle for the number one spot, Ethereum and Solana have both transacted over $18B so far this month. While Ethereum has its nose in front, Solana’s consistent position as the leader in terms of daily trading volume suggests that it may overtake Ethereum over the course of the month.

If Solana does manage to eclipse Ethereum DEX volume for the month of July, it will be the first time in the network’s history that it achieves this crucial milestone.

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