Raydium Surpasses Uniswap to Claim Top Spot in Monthly DEX Volume: Messari

by

As a researcher who’s been closely following the DeFi landscape for years, I can confidently say that I’ve never witnessed such a meteoric rise as Raydium’s. The way it’s leaving giants like Uniswap in its dust is nothing short of astonishing!

Back in October, I was thrilled to witness Raydium making history as it claimed the top spot among Decentralized Exchanges (DEX) in terms of trading volume, crossing all chain boundaries. And guess what? It didn’t stop there! In November, it continued to build on this milestone, further solidifying its position.

Based on the most recent findings from Messari, Raydium outpaced Uniswap significantly by approximately 30% in decentralized exchange (DEX) volumes for the month, totaling an impressive $124.6 billion as opposed to Uniswap’s $90.5 billion.

Raydium Leaves Uniswap Behind

This year, Raydium’s share within Solana’s Decentralized Exchange (DEX) trading volume has been on a steady rise. Starting from March 6th, Raydium has consistently surpassed Orca, its main rival, in terms of daily trading volumes.

In the third quarter of 2024, Raydium achieved a significant achievement by surpassing other platforms to record the highest daily decentralized exchange (DEX) volume for the first time since 2022. This marked two consecutive quarters where Raydium held the top position. By November 2024, as per Messari’s assessment, Raydium was responsible for more than 60% of Solana’s daily DEX volume.

The surge in meme coin trading has significantly boosted Raydium’s trading volume, noticeably after the U.S. presidential election on November 5, 2024. In the following weeks, daily meme coin trades on Raydium consistently reached close to $2 billion – a figure three times greater than the average for the preceding month.

In recent times, meme coins have become quite active and currently contribute to about 65% of Raydium’s daily trading volume. This is a substantial rise compared to the mere 2% they accounted for back in November 2023.

The close collaboration between Raydium and Pump.fun, a well-known meme coin launchpad built on the Solana network, has been significant. As the value of Pump.fun tokens rises to a market capitalization of $69,000, Raydium’s automated market maker (AMM) pools benefit from extra liquidity. This added liquidity offers continuous trading possibilities and contributes to increased volume, further strengthening the platform.

Raydium Boosted by Solana’s Growing Market Share

Raydium’s growing volume and achievements are closely tied to the swift growth of the Solana ecosystem, positioning itself as a formidable rival to Ethereum within the Decentralized Exchange (DEX) marketplace.

After a string of significant airdrops in December 2023, Solana started to rival Ethereum’s position in terms of weekly DEX volumes. Messari’s report pointed out that the surge in liquidity due to these airdrops significantly boosted Solana’s network activity.

Starting in Q3 2024, the proportion of weekly trading volume on Decentralized Exchanges (DEX) attributed to Solana surpassed Ethereum’s three times over, signaling a significant shift in the DEX market hierarchy. This trend persisted through October 2024, with Solana outperforming Ethereum daily on these exchanges. By November 2024, Solana accounted for close to half of the monthly DEX volume, representing an increase of 175% compared to Ethereum’s 18%. This surge in users has boosted trading volumes on platforms such as Raydium.

Read More

2024-12-11 21:42