Solana Sees Explosive Growth in DEX Trading Volume, Surpasses $2B Mark Multiple Times

In the DEX domain, Orca and Raydium have been leading the charge for Solana. Solana’s DeFi sector has grown dramatically during a market-wide rise. According to DeFiLlama data, the decentralised exchange trading volume on Solana exceeded $2 billion for four consecutive days between March 3 and March 6. The figure reached at $2.85 billion on March 5, setting a new record for daily trading volume.

Solana DEX Activity Soars

Over the last seven days, Solana’s trade volume has increased by more than 150%, drawing almost $15 billion. The tier 1 network had a $2.05 billion trading volume in the last 24 hours alone.

Solana now controls a sizable amount of the entire decentralised exchange (DEX) volume, accounting for 28.5%, while Ethereum holds a slightly larger share, 36.1%. Just a year ago, the scene looked dramatically different, with Solana accounting for only 1.1% of the market and Ethereum accounting for 50%-70%, according to data given by Tom Wan, a digital asset strategy associate at 21.

This transition essentially underlined Solana’s growth trajectory inside the DeFi ecosystem, establishing it as a contender to Ethereum’s long-standing dominance in the area, despite network difficulties. Orca is the leading DEX on Solana, with a trading volume of $847.53 million in the last 24 hours, followed by Raydium with $595.48 million and Phoenix with $288.4 million. Meanwhile, Solana’s native token, SOL, has regained its position as one of the top five crypto assets by market capitalization, with monthly gains of over 50%. It was currently trading at approximately $140.

Network Outages

Solana has experienced frequent downtime throughout its history. Since 2021, it has experienced at least one big crash per year, substantially affecting block production. Following criticism for these recurring disruptions, Solana deployed a number of improvements to address the problems.

These efforts allowed the network to provide uninterrupted service for a full year until a 5-hour interruption on February 6th, which ended the streak. According to the post-mortem report, a flaw in the Just-in-Time compilation cache caused older programmes  to be recompiled multiple times, monopolising network resources and halting blockchain operations. The problem effectively caused an indefinite recompile cycle in Solana’s transaction process. It had a specific impact on version 1.17 of Solana’s validator client, causing all validators to halt because 95% of the cluster stake used that version.

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