Crypto Analyzer

Solana: Of BONK, WIF, and their role in DEX volumes

### Solana Emerges as a Dominant Player in DEX Volumes

Solana, a popular smart contracts blockchain, has been making significant strides in network participation and decentralized exchange (DEX) volumes in recent weeks. Here’s a closer look at how the platform is standing out:

#### Surge in Active Wallets

The number of daily active wallets on Solana has seen a remarkable 37% increase month-to-date. According to data from Step Finance, on March 7th, there were 794.9K active wallets, marking the second-highest count in 2024. This surge in unique active wallets, which are defined as those paying fees for at least one transaction within a given period, has been on a parabolic rise since November 2023, when Solana previously saw fewer than 100,000 active wallets daily.

#### Boost in DEX Volumes

One of the factors contributing to the uptick in daily users on Solana is the notable increase in activity on Solana-based DEXes. DeFiLlama’s data shows that Solana has outperformed Ethereum for the second consecutive day in DEX volumes. Over the past week, Solana’s DEX volumes almost doubled, reaching $16.74 billion, marking its most prolific week ever. Top Solana DEXs like Jupiter and Orca have played a significant role in driving this surge, featuring prominently in the top 5 DEXes by 24-hour volumes.

#### Rise of Meme Coin Trading

The spike in DEX trading can also be attributed to the surge in meme coin trading on Solana. Meme coins such as Bonk and dogwifhat have seen impressive gains, with Bonk rising by 18% and dogwifhat by 71% over the week according to CoinMarketCap. Trading pairs like WIF/SOL and WIF/USDC have been among the top 10 most traded on exchanges like Jupiter, further fueling the meme coin frenzy on Solana.

#### Competitive Landscape

While Ethereum has traditionally been the go-to chain for meme coin trading, Solana’s recent successes have added a new dimension to the competitive landscape. The native token of the Solana network, SOL, has been performing well, trading at $146.76 at press time with a 14% increase over the week and a remarkable 42% monthly gain.

Solana’s growing network participation and increasing DEX volumes, fueled by meme coin trading and the platform’s overall performance, indicate a promising trajectory for the blockchain ecosystem. With its continued momentum, Solana is solidifying its position as a prominent player in the decentralized finance space.