Solana captures 50% of DEX volume amid memecoin surge

Solana (CRYPTO:BTC) has emerged as a dominant force in the decentralised exchange (DEX) market, capturing around 50% of total DEX volume in recent weeks, according to a report by OKX.

This surge is largely attributed to the launch of the memecoin platform Pump.fun, which has generated significant trading activity, even surpassing Ethereum's (CRYPTO:ETH) volume at times.

OKX highlighted that Solana briefly achieved an impressive 89.7% market share in DEX activity during the last week of December, maintaining above 50% for five consecutive weeks.

The report attributes Solana's rise to its rapid transaction speeds, low fees, and robust developer tools that appeal to retail traders.

Jupiter (CRYPTO:JUP), a Solana-native DEX aggregator, has played a crucial role in this growth, accounting for nearly 70% of Solana's DEX volume by optimising slippage and providing real-time pricing data.

A notable portion of Solana’s recent trading volume stems from the launch of memecoins associated with U.S. President Donald Trump and his wife Melania, which peaked at a combined market cap exceeding $20 billion.

Despite Solana's impressive performance in retail trading, Ethereum still dominates high-value trades, particularly those over $50,000.

Ethereum has tokenised 82% of real-world assets on blockchains and maintains a strong liquidity pool quality with ten out of the top twenty pools.

OKX cautioned that while Solana's current model is thriving, its lower total value locked (TVL) compared to Ethereum raises questions about sustainability.

At the time of reporting, the Solana (SOL) price was $241.30.