What’s Drawing Crypto Traders to Solana, Base, and Sui All of a Sudden?

As the wider market was lagging, decentralized exchange (DEX) volumes on the Solana, Base, and Sui platforms witnessed a significant upswing. This resurgence, which caught many by surprise, can be attributed in part to the strong performance of memecoins and prevailing positive sentiments about global economic policies. Given the influential nature of decisions made by key economic stakeholders, this uptick has garnered the attention of discerning market watchers.

Solana, Base, and Sui: The Unanticipated Pioneers of DEX Volume Growth

Recent statistics indicate that decentralized platforms operating on Solana, Base, and Sui experienced trading volume surges of 40%, 20%, and 30%, respectively, within a week. Solana led the charge with $7.13 billion, followed by Base at $3.92 billion and Sui registering $597 million. These figures gain significance against a backdrop of an overall reduction in DEX activity, with September volumes dipping to the lowest since February at $114 billion, down from $172 billion in the preceding month. Ethereum, Solana, and BNB Smart Chain continue to command the lion’s share of DEX transactions, underscoring their pivotal roles in the ecosystem of decentralized trading.

The volume hike is attributed to the broader revival of the cryptocurrency markets, spurred by external economic catalysts. Bitcoin rallied to a high of $66,000 on Friday, September 27, 2024, while Ethereum surpassed $2,700 the same day. This resurgence aligns with key macroeconomic events, such as the U.S. Federal Reserve slashing interest rates and China’s introduction of economic support measures, providing fresh momentum to the market and boosting investor interest in digital assets and decentralized trading platforms.

The Influence of Memecoins on Volume Revival

Contributing to the surge in DEX volumes, especially on Solana, is the ascent of memecoins. Notably, Moo Deng (MOODENG) witnessed an astounding 700% rise in value within a week, reaching a market cap over $300 million. Concurrently, Mother Iggy (MOTHER), affiliated with artist Iggy Azalea, climbed by 96%, pushing its market valuation to $112 million. These memecoin rallies have notably amplified activities within the Pump.fun token ecosystem on Solana, where the total market capitalization now exceeds $1 billion and generated fees have accumulated to $148 million.

Nonetheless, the resurgence isn’t confined to Solana. On Base, Aerodrome has established itself as the most prominent DEX, amassing over $2.66 billion in volume. PancakeSwap and Clober, among others, have also reported commendable performances. The Sui network’s market dominance is embodied by DEXs such as Cetus, DeepBook, Turbos, and Kriya. While memecoins are often viewed as speculative, they play a consequential role in the current crypto trading dynamics.

The rebounding trade volumes on the DEX platforms of Solana, Base, and Sui, energized in part by memecoins and supportive economic conditions, reflect these platforms’ capacities to captivate investors even amid uncertainty. Still, this revival is delicate, as the innate volatility of the cryptocurrency market and the global economic unpredictability may yet recontextualize the crypto landscape.

Luc Jose A.

A Sciences Po Toulouse graduate with a blockchain consultancy certification from Alyra, I’ve been part of the Cointribune journey since 2019. Convinced of the blockchain’s transformative potential across various economic sectors, I am committed to raising awareness and informing the broader public about this continuously evolving ecosystem. My goal is to empower everyone with a better understanding of blockchain technology and the opportunities it presents. I endeavor daily to provide objective news analyses, decipher market trends, relay the latest technological breakthroughs, and contextualize the economic and societal implications of this ongoing revolution.