According to a report by Pantera Capital, over 60% of the increase in trading volume on decentralized exchanges (DEX) in the past 6 months has been on the Solana blockchain.
Solana’s share of DEX volume has grown from 0% at the beginning of 2021 to 24% as of May 2024. Pantera emphasized that Solana’s integrated approach, similar to the combination of hardware and software in Apple’s MacOS, has led to this growth by improving performance and attracting more activity.
The network’s active addresses have jumped from 14,000 in October 2020 to nearly 1.3 million as of May 2024. As a result, Solana’s priority fees have sharply increased from under $100,000 per month in mid-2023 to over $60 million in March 2024.
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The architecture of Solana has also made it popular among meme cryptocurrency developers and decentralized infrastructure projects. Since January, the network has seen an increasing number of new tokens, surpassing chains like Binance Smart Chain, Ethereum, and Polygon. By May 2024, 85% of all new tokens on DEX are on Solana, compared to 50% in the previous year.
This performance has had a significant impact on the price of Solana, which has increased by over 723% in the past year, trading at $123 at the time of writing this article.
