DEXs and Stablecoins: Solana’s Growth in DeFi
Solana’s rapid growth has been one of the current standout stories in the cryptocurrency market. This article will take a closer look at its impressive expansion, the rapid growth of the decentralized exchanges (DEXs) and stablecoins in Solana’s DeFi market.
The DeFi sector on Solana has experienced an impressive expansion, highlighted by its Total Value Locked (TVL), which surged to over $10 billion as of March 21, 2024. In the meantime, DEX trading volumes have also seen a sharp rise since October 2023, with weekly trading volumes exceeding $1 billion by November. By the first week of March, these volumes had reached a peak of $18 billion and hit a new record of 26.7 billion two weeks later.
Solana’s developer community is a key factor driving the growth, which maintains a steady monthly active developer count between 2,500 to 3,000. Also, the vibrant projects with airdrops in the last quarter, such as those from Jito and DEX Jupiter, fueled DeFi activities further. The surge in meme coin popularity has also significantly boosted engagement. Coins such as Bonk, Dogwifhat, the recent book of meme, Slerf, etc., skyrocketed in merely days to weeks. These trends underscore the impact of meme coin enthusiasm on Solana’s overall market energy.
Leading DEXs on Solana
Solana’s DEX ecosystem has seen remarkable growth, fueled by its surging popularity and a significant increase in trading volumes. This month, the 24-hour DEX trading volume once surpassed Ethereum’s, reaching a new milestone of $21.3 billion compared to Ethereum’s $19 billion. Among the increase, several platforms have led the market: Orca, Raydium, and Jupiter.
Based on the Solana blockchain, Orca distinguishes itself by emphasizing capital efficiency and design that prioritizes users. As an Automated Market Maker (AMM), Orca facilitates swift and cost-efficient token trades. It incentivizes liquidity providers by offering a share of trading fees for contributing to its specialized liquidity pools, known as “Whirlpools.” This approach yields higher returns for providers and ensures more favorable pricing and lower slippage for traders.
Raydium is one of the AMMs on Solana that plays a vital role in the ecosystem, providing liquidity and enabling fast transactions. It introduces a novel concept by interacting with OpenBook’s central limit order book, allowing liquidity pooling and ensuring optimal swap routes for the best prices. Its native token, RAY, is used for staking, governance, and participating in token sales, highlighting its multifunctional role in enhancing liquidity and yield farming opportunities within Solana’s DeFi space.
Jupiter, a DEX aggregator on Solana, revolutionizes how users find the best trading routes across various platforms. Its recent airdrop of the native token $JUP is one of the biggest token launches this year. In January, it made headlines for its extraordinary trading volumes, surpassing even Uniswap v3.
Stablecoins in Solana’s DeFi Market
The Solana DeFi ecosystem is experiencing significant growth, making stablecoins indispensable for users diving into the DEX market. A revival in stablecoin activity and broader engagement across the Solana blockchain has recently become evident. According to DeFiLlama, the stablecoin market cap within the network soared to 2.9 billion USD by March 21, underscoring the burgeoning demand.
In January, GMO Trust officially launched our JPY-backed stablecoin, GYEN, and USD-backed stablecoin, ZUSD, on the Solana network. Regulated by the NYDFS, stablecoin GYEN and ZUSD stand as transparent and trustworthy choices for users on the Solana chain. The backing assets for these stablecoins are audited monthly and reports are published on the official website, ensuring transparency and security for users.
Currently, the minting of GYEN and ZUSD and swaps among supported blockchains are exclusively available on GMO Trust's official platform. For more details, please visit: https://stablecoin.z.com/
Looking ahead, we are excited to broaden our offerings with more purchasing and trading options, aiming to improve accessibility and user convenience further. Stay tuned for the latest developments of our stablecoin solutions on Solana.
About GMO-Z.com Trust Company
GMO Trust connects traditional finance and blockchain technology for everyone. We issue GYEN, the world’s first regulated Japanese Yen stablecoin, and ZUSD, our trusted U.S. Dollar stablecoin. Visit our website to learn more.
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