According to a report by Pantera Capital, over 60% of the new trading volume heading to decentralized exchanges (DEX) in the past 6 months is on the Solana blockchain.
Solana’s share of DEX volume has increased from 0% at the beginning of 2021 to 24% as of May 2024. Pantera emphasized that Solana’s integrated approach, likened to the combination of hardware and software in Apple’s macOS, has led to this growth by improving performance and attracting more activity.
Network’s active addresses 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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Solana’s architecture has also made it a favorite among meme coin developers and decentralized infrastructure projects. Since January, the network has seen a growing number of new tokens, surpassing chains like BNB Smart Chain, Ethereum, and Polygon. By May 2024, 85% of all new tokens on DEX are on Solana, compared to 50% 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.
