Solana’s DEX Volume Hits Record High Amid Meme Coin Surge

Solana’s Decentralized Exchange Volume Hits Record High Amid Meme Coin Surge

Solana’s volume in the decentralized exchange industry has surged to a record high, reaching $19.47 billion, up from $19.37 billion the previous day.

What’s Behind the Surge?

The recent launch of the Official Trump meme coin on January 17th is the primary driver of this surge. The token has gained a market capitalization of over $7.5 billion, with its 24-hour trading volume jumping to $11 billion.

Most of this volume is happening in Solana DEX networks, led by Meteora, Raydium, Orca, and Lifinity. Centralized exchanges like OKX, Binance, Bitget, and MEXC have also listed the token and are starting to gain some market share.

Comparison with Other Leading Chains

Solana’s DEX volume significantly outperforms other leading layer-1 and layer-2 chains. Ethereum’s protocols handled $3.63 billion in the last 24 hours, while BNB Chain, Base, and Arbitrum handled $3 billion, $2 billion, and $1 billion, respectively.

Solana’s weekly volume has also jumped to a record high of over $56 billion, surpassing the combined volume of Ethereum, BNB, Base, and Arbitrum.

Other Contributing Factors

Other Solana meme coins, such as Bonk (BONK) and Fartcoin, have also contributed to this volume growth. Bonk jumped by 10%, with its 24-hour volume reaching over $1 billion, while Fartcoin’s price jumped by almost 30%, with its volume reaching $557 million.

This performance led to higher fees for the Solana blockchain, with fees jumping to $4.7 million, the highest level since January 8th.

Solana’s Price Surge

These fundamentals, combined with rising hopes for SOL ETF approval, have pushed the token to a record high. Solana’s price jumped to a high of $275 on January 19th, crossing last year’s high of $265 and invalidating the double-top pattern that formed.

A double-top is a technical pattern that often leads to a bearish breakout. However, in this case, the price has remained above all moving averages, while the Money Flow Index has tilted upwards and is nearing its overbought level. This suggests that the coin will likely keep rising as bulls target the key resistance at $281.

As the Solana price continues to rise, investors are advised to keep a close eye on the token’s performance and consider the potential risks and rewards of investing in the cryptocurrency market.

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