Raydium has become very strong in the decentralized exchange (DEX) area, dominating Solana’s ecosystem. In Nov. 2024, it beat Uniswap by 30%, hitting $124.6 billion in trading volume. Memecoin trading propels this jump, making up 65% of Raydium’s total volume.
According to the Messari report, Solana’s DEX actions, bolstered by Raydium, now make up almost half of all chain activity, much bigger than Ethereum’s 18% shares. Raydium’s rise began in March 2024, going past Orca in daily volume.
By November, it had more than 60% of Solana’s daily DEX trading. Its growth is due to ongoing upgrades, like the V3 interface released in May. These updates made liquidity management easier and brought in new features such as price oracles and token compatibility, drawing many traders.
Raydium and Pump.fun: A memecoin synergy
Memecoins have played a pivotal role. After the U.S. presidential election in November, Raydium’s memecoin trading volume went up three times, reaching about $2 billion every day. Its synergy with Pump.fun, a memecoin launchpad, brought steady liquidity, leading to more trading chances.
Solana’s ecosystem growth has helped Raydium a lot. Since late 2023, Solana has competed with Ethereum in DEX volume. Its low fees and fast processing appeal to traders who are unhappy with Ethereum’s delays. Raydium takes advantage of these benefits, providing an easy user experience that draws in high-frequency traders and liquidity providers.
Raydium’s dominance reflects a shift in the DEX hierarchy. Driven by Raydium, Solana now leads the charge against Ethereum. With ongoing changes and strategies matching Solana’s expansion, Raydium is set to keep its position, creating a standard for decentralized trading sites.
