According to data from DeFiLlama, decentralized exchange (DEX) trading volume on the Solana blockchain surged by an impressive 67% over the span of seven days, reaching a staggering $21.3 billion. Meanwhile, Ethereum-based DEXs saw a more modest 3% increase, reaching $19.4 billion in trading volume during the same period.
This surge in trading activity comes against the backdrop of significant milestones for both Solana (SOL) and Ethereum (ETH). SOL tested the $200 mark earlier this year, while ETH soared to $4,000 in March amid a broader rally in the cryptocurrency market, led by Bitcoin (BTC) reaching new all-time highs.
Solana’s rise to prominence can be attributed in part to the fervor surrounding meme coins built on its blockchain, including Dogwifhat (WIF), Bonk (BONK), Book of Meme (BOME), and Slerf (SLERF). According to analysis from Reflexivity Research, the growth in Solana’s trading volume began in the fourth quarter of 2023, coinciding with the proliferation of token launches and incentivized programs such as Solana DEX Jupiter.
However, the rapid increase in demand for meme coins has also presented challenges for the Solana Network. Users have reported issues such as failed or delayed transactions as the network grapples with the surge in activity.
In response, the Solana Foundation has issued a set of recommended guidelines for developers to address the strain on the network. These guidelines include implementing priority fees and various optimizations aimed at mitigating transaction failures and delays, ensuring a smoother experience for users navigating the burgeoning Solana ecosystem.
