Why Solana, Base and Sui DEX Exchanges Are Experiencing a Sudden Rise?

Decentralized exchange (DEX) volumes on the Solana, Base, and Sui networks have jumped significantly in recent hours. This unexpected recovery is partly driven by the performance of memecoins and general optimism about global economic decisions.

Solana, Base and Sui: Unexpected leaders of DEX volume growth

According to some data, decentralized platforms Solana, Base and Sui have seen their trading volume increase by 40%, 20% and 30% in the last seven days. Solana alone handled $7.13 billion, followed by Base with $3.92 billion and Sui with $597 million. These numbers are all the more important as they come against the backdrop of total DEX volumes falling in September, with their lowest level since February at just $114 billion, compared to $172 billion the previous month. Ethereum, Solana and BNB Smart Chain share the majority of transactions on the DEX, confirming their position as the core platform for decentralized exchanges.

This sudden increase in volumes is closely related to the general recovery of crypto markets, supported by external economic factors. Bitcoin bounced back to $66,000 on Friday, September 27, 2024, while Ethereum breached $2,700 on the same day. This renewed activity coincides with significant macroeconomic events, notably the US Federal Reserve’s decision to cut interest rates, as well as the initiation of support measures by the Chinese government. Thus, this combination breathed new life into the market and strengthened investors’ appetite for digital assets and decentralized trading platforms.

The role of memecoins in the recovery of volumes

One of the fundamental reasons for this increase in volumes on DEXs, especially on Solana, is the rise of memecoins. Notable examples include Moo Deng (MOODENG) seeing a 700% price increase in one week with a market cap of over $300 million. At the same time, Mother Iggy (MOTHER), a token associated with rapper Iggy Azalia, rose 96%, bringing its valuation to $112 million. This strong return of meme tokens on Solana has led to a significant increase in the Pump.fun token ecosystem, with a total capitalization of more than $1 billion, with $148 million in fees collected.

However, Solana is not the only one benefiting from this revival. On Base, the Aerodrome platform cemented its place as the most active DEX with a volume of over $2.66 billion. Other platforms such as PancakeSwap and Clober also saw strong performance. On Sui, DEXs Cetus, DeepBook, Turbos and Kriya dominated the market, cementing their position on this nascent blockchain. Although memecoins are often seen as speculative assets, they play a significant role in the current dynamics of crypto exchanges.

The revival of volumes on Solana, Base and Sui DEXs, partly driven by memecoins and a favorable economic context, shows the ability of these platforms to attract investors even in uncertain times. However, this recovery remains fragile. The volatility associated with the crypto market combined with global economic uncertainty could reshape the crypto ecosystem once again.

Luc Jose A.

A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I made a commitment to raise awareness and inform the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. Every day I try to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations and put into perspective the economic and social problems of this ongoing revolution.

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The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.