Solana DEXs Surge Amidst Memecoin Frenzy, Outpacing Ethereum

Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights. This week, memecoins have taken over Solana-based decentralized exchanges, even eclipsing Ethereum-based memecoins in trading volume. Milady NFT collection has launched its own token, reaching $18.6 million in presale within hours. ParaSwap narrowly evaded a hack targeting an Augustus v6 contract vulnerability, while the price of Ether has fallen 18% in the past week, with over $212 million worth of leveraged long positions at risk of liquidation.

Solana DEXs Surge Amid Memecoin Frenzy, Surpassing Ethereum

The cryptosphere has witnessed an unprecedented surge in the popularity of Solana-based decentralized exchanges (DEXs), propelled by a frenzy of memecoin trading. This surge has catapulted these DEXs to the forefront of trading volume, surpassing their Ethereum counterparts. Notably, certain memecoins have eclipsed Ethereum-based counterparts in trading volume on DEXs mere hours after their launch. This phenomenon underscores the growing prominence of Solana in the DeFi landscape.

Milady NFT Collection Embraces Memecoin Mania

The Milady nonfungible token (NFT) collection has joined the memecoin rush, unveiling its own token, which garnered a staggering $18.6 million within a mere two hours of its presale announcement. This rapid accumulation of funds highlights the immense enthusiasm surrounding memecoins and the potential of NFTs to capitalize on this trend.

ParaSwap Thwarts Hack Attempt with White Hat Intervention

DeFi aggregator ParaSwap skillfully averted a potentially disastrous hack by swiftly suspending its Augustus v6 contract application programming interface (API) upon discovering a vulnerability. This decisive action, coupled with the intervention of a white hat hacker, safeguarded the funds of potential victims. This incident underscores the importance of vigilance in the DeFi sector and the collaborative efforts necessary to mitigate cyber threats.

Ether Price Plunge Threatens Liquidations

The cryptocurrency market has experienced a sharp decline in the price of Ether (ETH), with a 9.3% drop to $3,254 in the 24 hours preceding 10:40 AM UTC on March 19th. This weekly loss of over 18% has raised concerns about potential liquidations of leveraged long positions. Coinglass data indicates that a dip to $3,100 could trigger the liquidation of over $212 million worth of these leveraged positions.

Solana Network Overwhelmed by Memecoin Frenzy

The Solana network has faced significant challenges in handling the surge in transaction volume associated with the memecoin craze. On March 16th, Solana's trading volume surpassed Ethereum's, reaching $3.52 billion and eclipsing the latter's daily volume by more than $1.1 billion. However, this surge has strained the Solana network, causing transaction failures and delays.

Solana Memecoins Surge, Despite Transaction Woes

Despite the network's struggles, Solana-based memecoins continue to witness explosive growth. SolAPE and SAMO, two prominent memecoins on the Solana network, have experienced substantial gains in recent weeks. SolAPE has surged by over 450% in the past month, while SAMO has rallied by over 125%. The popularity of these memecoins is a testament to the growing interest in Solana as a platform for decentralized applications.

Milady Memecoin Raises $18.6 Million in Record Time

The Milady NFT collection has made waves in the crypto community with its novel Solana memecoin, Milady Wif Hat. Within two hours of its presale announcement, the memecoin garnered an impressive $18.6 million, reflecting the immense demand for Solana-based memecoins. This achievement highlights the lucrative opportunities presented by the memecoin craze to NFT collections.

ParaSwap Dodges Hack with Timely Intervention

ParaSwap's quick response to the vulnerability in its Augustus v6 contract is a testament to the platform's commitment to security. The identification and suspension of the contract, coupled with the assistance of a white hat hacker, prevented a potentially devastating hack. This incident emphasizes the critical role of security audits and the importance of collaboration in the DeFi ecosystem.

Ether Price Decline Poses Liquidation Risks

The recent decline in Ether's price has raised concerns about the potential liquidation of leveraged long positions. Coinglass data suggests that a drop to $3,100 could trigger the liquidation of over $212 million worth of these positions. This potential sell-off could further exacerbate the downward pressure on Ether's price.

DeFi Market Outlook

The DeFi market has witnessed a bearish week, with most of the top 100 tokens by market capitalization trading in the red. The total value locked in DeFi protocols has dipped below $100 billion, indicating a contraction in the sector. This correction highlights the volatility of the DeFi market and the need for investors to exercise caution.