Solana controls a fifth of trading on DEX

Of last month's total DEX trading volume of $179 billion, Solana held 25%, while Ethereum controlled 31%, according to DefiLlama.

At the beginning of this year, Solana's share was 16%, while Ethereum's share was still 31%. Crypto hedge fund Pantera Capital released a report Tuesday saying Solana's share gains were driven by retail traders speculating on the meme coins, attracted by low transaction fees.

Trading activity on Solana accounts for a fifth of total DEX volume

Combining a variety of assets ranging from dog- and cat-themed coins to so-called PolitiFi tokens inspired by political figures, Solana has attracted a wave of liquidity from traders looking to capitalize on these viral cryptocurrencies.

Solana accounts for 85% of all new tokens traded on DEX since the beginning of the year, which also indicates an increase in volume due to meme coins.

According to Pantera experts, this is why the Phantom wallet, used to work with DEX on the Solana network, has become the most dominant application in the iOS app store.

The fact that the crypto wallet became the most downloaded app on the App Store in the US is a remarkable achievement and indicates widespread adoption of Solana, Pantera said in its report. “This influx of retail trading is closely related to the boom of meme coins on the Solana decentralized exchanges.

While Solana's growth in DEX volume is significant, competing networks are also gaining momentum.

Ethereum Base, a second-layer blockchain launched by crypto exchange Coinbase (NASDAQ:COIN), is also gaining market share, thanks in large part to low transaction fees.