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Solana-based decentralized exchanges (DEXs) have seen a notable increase in trading activity, with their volume exceeding the $1 billion threshold. According to DEX Screener, the current trading volume is $1.23 billion, marking a substantial rise from last week’s average volume, under $1 billion.
Interestingly, this surge is largely attributed to the rising popularity of meme coins within the Solana ecosystem.
Meme Coins Fueled Solana DEXs Volume Rebound
This resurgence in Solana DEXs volume is particularly noteworthy as it coincides with increased regulatory scrutiny in the decentralized finance (DeFi) sector. Recently, the SEC issued a Wells notice to Uniswap, one of the leading players in the DeFi space.
Many see that the SEC’s action signals a broader regulatory gaze upon the DeFi industry, potentially adding to the challenges and uncertainties looming over decentralized platforms.
This contrasting backdrop further highlights the unique trajectory of the meme coin market segment. Meme coins SLERF, cat in a dogs world (MEW), and Dogwifhat (WIF) have emerged as key Solana DEX trading boom drivers.
Read more: 11 Best Solana Meme Coins to Watch in 2024
Within the past 24 hours, SLERF alone recorded an impressive $48.5 million in volume. MEW/SOL and WIF/SOL pairs also saw substantial activity, generating $45.7 million and $22.5 million in volume, respectively.
These meme coins have also demonstrated strong price performance. MEW experienced a notable 86.75% increase within 24 hours, while WIF and SLERF recorded gains of 13.47% and 44.01%, respectively. Raydium, a leading Solana DEX, has played a significant role in facilitating this volume surge.
The meme coin rally coincides with a broader crypto market recovery following a brief downturn spurred by geopolitical tensions between Iran and Israel. This performance reinforces the narrative surrounding meme coins and their potential despite their reputation for high volatility and associated risks.
A recent CoinGecko report highlights meme coins as the most profitable crypto narrative in Q1 2024. Even Ethereum co-founder Vitalik Buterin has acknowledged the potential for positive use cases for meme coins. This growing interest lends further credence to the trend.
Read more: How to Buy Solana Meme Coins: A Step-By-Step Guide
“It feels like there is an unclaimed opportunity here to try to create something more positive-sum and long-lasting. But ultimately, I think even that would create something fundamentally limited, and we can do better,” Buterin wrote in his blog post on March 29, 2024.