As a seasoned analyst with over two decades of experience in the financial industry, I find myself intrigued by the current state of DeFi on Solana. While it may seem that Ethereum still reigns supreme in the DeFi space, the Solana scene is undeniably booming – and Raydium, a leading decentralized exchange, is at the heart of this surge.
It appears that the pace of activity within Decentralized Finance (DeFi) could be slowing down by early September, based on recent data from DeFiLlama. The combined value of assets managed across all DeFi protocols on major blockchains such as Ethereum and Solana is approximately $77 billion. Notably, Ethereum holds the largest share in terms of Total Value Locked (TVL).
Raydium Dominates Solana DeFi Scene
It’s worth noting that the Solana DeFi sector appears to be thriving based on current statistics. Raydium, one of the main decentralized exchanges on the Solana network, is cementing itself as a key player within the DeFi landscape on this platform.
Based on information from Artemis, as reported by an analyst, the Decentralized Exchange (DEX) currently dominates approximately 60% of the market and regularly draws in more than 200,000 active users. At the moment, Raydium is the DeFi protocol with the highest level of user interaction, outpacing Jupiter in this aspect.
The increase in user interactions has led to a significant expansion in the number of daily active addresses. Recent statistics indicate that the current blockchain platform typically accommodates around 5.5 million active users daily, marking an all-time high. Despite Ethereum’s and its layer-2 network’s rapid growth, it appears that the user activity on Solana’s protocol is more substantial compared to theirs.
Solana is inherently scalable at its fundamental level, unlike Ethereum’s scaling solutions such as Base and Arbitrum. This means it can handle high transaction volumes with greater assurance because it doesn’t rely on external tools like a fault-tolerant system or a sequencer. Off-chain systems, which are often employed for scaling, can potentially introduce vulnerabilities and may lead to centralization issues.
Gas Fees Rapidly Falling, Meme Coin Activity Shifts To Tron
It’s intriguing that despite an increase in daily active addresses, gas fees have significantly decreased. By September 7th, the income derived from gas fees reached its lowest point in half a year, settling around $414,000.
As a crypto investor, I’ve noticed that while there has been a temporary boost in revenue, it pales in comparison to the staggering $5 million generated back on March 18, according to TokenTerminal’s data.
The decrease in transaction fees might be associated with the decreasing interest in Pump.fun, a meme coin launchpad on Solana. Over the last few weeks, launchpad gas fees have significantly dropped, falling more than 80% after reaching over $2.31 million in late July. By September 7th, according to DeFiLlama, Pump.fun had generated approximately $319,000 in fees.
It appears that the buzz surrounding meme coins is moving towards the Tron blockchain, based on reliable data from DeFiLlama. This shift seems to correlate with the launch of SunPump, a meme coin launchpad in August, which followed a decrease in activity on Pump.fun. Furthermore, due to this transition, daily fees on the Solana network have become a factor.
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2024-09-11 23:11