Boom in DEX volumes: Why Solana, Base and Sui are suddenly attracting crypto traders?

In recent hours, decentralized exchange (DEX) volumes on the Solana, Base and Sui networks have jumped significantly. This unexpected resurgence is fueled in part by the performance of memecoins and general optimism around global economic decisions.

Solana, Base and Sui: the unexpected leaders of the rise in DEX volumes

According to some data, the decentralized platforms of Solana, Base and Sui have seen a 40%, 20% and 30% increase in their trading volumes respectively over the last seven days. Indeed, Solana alone processed $7.13 billion, followed by Base with $3.92 billion and Sui with $597 million. These figures are all the more important because they come against a backdrop where overall DEX volumes were down 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 DEXs, which confirms their status as essential platforms for decentralized exchanges.

This sudden increase in volumes is closely linked to the general recovery of crypto markets, supported by external economic factors. Bitcoin rebounded to reach $66,000 on Friday, September 27, 2024, while Ethereum crossed the $2,700 threshold on the same day. This renewed activity coincides with major macroeconomic eventsnotably the decision of the American Federal Reserve to reduce interest rates, as well as the launch of support measures by the Chinese government. Thus, this combination has breathed new life into the market, with investors' appetite for digital assets and decentralized trading platforms strengthening.

The role of memecoins in the resurgence of volumes

One of the underlying reasons for this surge in volumes on DEXs, particularly on Solana, is the rise of memecoins. Among notable examples, Moo Deng (MOODENG) saw its price rise 700% in one week, with a market capitalization of over $300 million. At the same time, Mother Iggy (MOTHER), a token associated with rapper Iggy Azalia, increased by 96%, bringing its valuation to $112 million. This strong comeback of meme tokens on Solana led to a notable increase in the Pump.fun token ecosystem, whose overall capitalization exceeded $1 billion, with fees collected of $148 million.

However, it’s not just Solana that has benefited from this resurgence. On Base, the Aerodrome platform solidified its place as the most active DEX, with over $2.66 billion in volume. Other platforms, such as PancakeSwap and Clober, also saw strong performance. On Sui, DEXs Cetus, DeepBook, Turbos and Kriya have dominated the market, thus consolidating their position on this emerging blockchain. Although memecoins are often perceived as speculative assets, they play a significant role in the current dynamic of crypto exchanges.

The rebound in volumes on the DEXs of Solana, Base and Sui, fueled in part 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 inherent in the crypto market, combined with global economic uncertainties could once again reshape the crypto ecosystem.