Solana becomes the most sought-after chain for this reason
- Solana witnessed a whopping 81% increase in weekly DEX volumes.
- Native coin SOL has exploded 261% since the mid-October rally.
Solana [SOL] flipped Arbitrum [ARB] to become the second-largest blockchain in terms of decentralized exchange (DEX) volumes in the last 24 hours.
Increased activity on Solana-based DEXs
According to AMBCrypto’s analysis of DeFiLlama’s data, Solana-based DEXes logged trades valued more than $912 million, compared to $721 worth of trading on Arbitrum.
Market leader Ethereum [ETH] meanwhile, was sitting pretty at the top, with more than $1 billion in transactions.
In the last seven days, Solana witnessed DEX volumes in excess of $6 billion, marking a whopping 81% increase.
In fact, upon further scrutiny, AMBCrypto noticed a dramatic spike in trading activity over the last month and a half.
Following an extended dry period in 2023, when average monthly volumes fluctuated between $1 billion and $1.8 billion, November saw deals worth $7.4 billion.
Furthermore, December has already seen volumes of $7 billion at the midway point. If the current trend continues, December could be the most productive month for Solana DEX volumes on record.
Nearly all major liquidity providers on the network contributed to the surge. Orca spearheaded by settling $2.2 billion on its platform over the week, a jump of 93% from the previous 7-day period.
Raydium, the second-largest DEX on Solana, witnessed volumes of over $1.5 billion in the past week.
Solana’s TVL soars to new highs
Apart from the frantic activity on its DEXes, Solana network witnessed sharp growth in the USD value of cryptos locked on its DeFi projects.
In fact, the total value locked (TVL) more than doubled since mid-October, AMBCrypto found out using DeFiLlama’s data. After Avalanche [AVAX], Solana exhibited the highest monthly TVL gain, at nearly 45%.
SOL becomes market favorite
Solana’s DeFi prospects were likely boosted by a stupendous show at the price charts. Native coin SOL has exploded 261% since the mid-October rally, reclaiming pre-bear market levels of 2022, according to CoinMarketCap.
The fantastic turnaround in spot price garnered the interest of derivatives traders. As per AMBCrypto’s analysis of Coinglass data, capital invested in active SOL futures contracts more than tripled, mimicking the growth trajectory of price.
