Solana (SOL) DEX Volume Remains Robust Despite Memecoin Meltdown

The blockchain's share of on-chain DEX trading briefly surpassed the combined volumes of Ethereum (ETH) and its layer-2 networks at over 43%

Solana’s decentralised exchange (DEX) volume remains robust despite a steep decline in memecoin activity, according to a recent report by asset manager VanEck.

The blockchain’s share of on-chain DEX trading briefly surpassed the combined volumes of Ethereum (ETH) and its layer-2 networks in February at over 43%. By March, its share had dipped to around 30%, still competitive with Ethereum’s roughly 40%.

Solana’s ‘Memecoin Meltdown’

VanEck attributes the dip partly to what it calls a “memecoin meltdown” that unsettled the Solana ecosystem in February. The turmoil led to a steep decline in stablecoin transfers—down 80% from January levels.

One “incident” involved the Libra token, linked to Argentine President Javier Milei, which lost around US$4.4B (AU$6.95B) in market value within hours of launching. Another memecoin connected to US President Donald Trump generated around US$2B (AU$3.1) across 800,000 wallets.

Of course, the memecoin meltdown VanEck talks about has a lot to do with Pump.fun. Roughly 80% of Solana’s on-chain revenue is linked to memecoins, many of which begin trading on the Pump.fun platform before moving to Raydium, Solana’s top DEX, with over US$1.3B (AU$2.03B) in total value locked (TVL).

Despite these setbacks, major Solana-based platforms continue to see significant inflows. Raydium, the most popular DEX on the network, currently holds more than US$1.3B (AU$2.05B) in TVL.

VanEck also highlights Solana’s notable performance in 2024, including a 191% increase in the native token’s price, a 700% surge in on-chain revenues (excluding miner extractable value), and a 291% rise in stablecoin supply. These metrics suggest that, despite short-term volatility tied to memecoin speculation, Solana’s broader ecosystem remains appealing to traders and developers.