Raydium on Solana: The DEX That’s Beating Ethereum’s Numbers

Solana recently made headlines by hitting a key 50% retracement level, a pattern that many market makers consider a reliable trading indicator. This technical development highlights the consistency of Solana’s price action.

The Solana ecosystem, particularly its decentralized exchange (DEX), Raydium, is growing rapidly. For two consecutive months, Raydium has surpassed Uniswap in monthly trading volume, marking a shift in decentralized finance (DeFi).

Raydium’s Dominance in the DEX Market

Raydium, the largest automated market maker (AMM) DEX on Solana, has played a key role in the Solana network’s rise. Launched in 2021, the platform allows users to create liquidity pools, provide liquidity, and swap tokens.

Users can earn fees through trading activities, while Raydium’s native token, RAY, adds an incentive layer. According to a Messari report, Raydium has become the leader in Solana’s DEX ecosystem in 2024, surpassing competitors like Orca. By November 2024, Raydium held over 60% of Solana’s daily DEX volume.

Memecoin Trading Fuels Raydium’s Growth

A major reason for Raydium’s growth has been the surge in memecoin trading. Following the 2024 U.S. presidential election, Raydium’s daily memecoin volume nearly tripled, reaching almost $2 billion in daily trades.

Read also: CryptoQuant Spotlights Solana, Toncoin as Rally Picks Post BTC, BNB Surge

Memecoin trading now makes up a significant portion of Raydium’s overall volume, accounting for 65% by November 2024. This trend grew stronger through Raydium’s collaboration with Pump.fun, a memecoin launchpad. As tokens on Pump.fun reach specific market caps, they add liquidity to Raydium’s pools, driving further volume and attracting new traders.

Solana vs. Ethereum: The Shift in DEX Volume Supremacy

Solana’s rise is also changing the competitive dynamics with Ethereum. Throughout 2024, Solana’s DEX volume has consistently surpassed Ethereum’s. Solana held nearly 50% of monthly DEX volume by November across all chains — 175% more than Ethereum’s roughly 18% share. This shift is mainly due to Solana’s low transaction costs and high throughput, which contrast with Ethereum’s network congestion and high gas fees.

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