Raydium, a decentralized exchange (DEX) built on the Solana blockchain, has recently surpassed Uniswap in monthly trading volumes for the second consecutive month.
As per the report, in November, Raydium, native to Solana, surpassed Uniswap, typically the most popular DEX, in monthly trading volumes by about 30%, or around $30 billion. This follows a narrower victory in October, when Raydium’s volume was roughly 10% higher than Uniswap’s, as per a post by Ryan Watkins, co-founder of Syncracy Capital.
According to the Messari research, Raydium’s “success is largely attributed to its dominance within the Solana ecosystem,” with the DEX routinely capturing more than 60% of daily DEX volume on the layer 1 blockchain network.
The report points out that memecoin trading has been a big factor in Raydium’s success, with memecoins making up a record 65% of its total trading volume in November.
Memecoins, driven by investment from venture capital and political hype, now have a total market value of about $130 billion, according to CoinGecko.
In 2024, Solana became a major center for trading these coins, mainly because of the growing popularity of Pump.fun. This platform helps create memecoins and get them ready for trading.
Many of the memecoins created on Pump.fun are later traded on Raydium. DefiLlama’a data reveals that Pump.fun is now the fifth highest-earning platform in the Web3 space, making over $100 million in fees in the last 30 days. Its earnings are just behind major players like Circle, the issuer of USD Coin (USDC), and the Solana network.
In October, the team behind Pump.fun hinted at plans to release a new token and launch an upgraded trading terminal called “Pump Advance.” Raydium only operates on the Solana blockchain, while Uniswap is available on 18 different blockchains, according to DefiLlama.
In 2024, the total value locked (TVL) on Solana has grown by about five times, though it’s still far behind Ethereum, which has over $70 billion in TVL.
Solana’s growth can be partly credited to its technical advantages, such as faster transaction speeds and lower costs, which have attracted users looking for a quicker and more affordable decentralized finance (DeFi) experience, according to the report.
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