The layer-1 Solana network has been the talk of the town over the past few weeks, as its overall performance continues to grow significantly. This time, the total trading volume of decentralized exchanges (DEXes) building on the network has surpassed those on the Ethereum layer-2 network Polygon.
DEX Trade Volume: Solana Surpasses Polygon
According to on-chain analysis from the blockchain data platform Artemis, DEXes on Solana held a total trade volume of over $240 million on November 2nd alone. DEXes building on the Polygon network accounted for a total trading volume of more than $137 million.
Source: Artemis
Solana’s explosive growth, as shown in the chart above, is applaudable because, on October 28, the L1 blockchain’s total DEX trade volume was only $32 million, half of what those of Polygon generated on the same day.
From October 31st, Solana’s growth came to light, taking its DEX volume to $103 million whereas Polygon’s metric was above $107 million. A day later, Solana DEXes soared to nearly $300 million, while Polygon DEXes recorded only $138 million.
Why is Solana Increasing?
Solana’s explosive growth is tied to several events. Among them is the increase in engagement with the projects building on the L1 network. On Tuesday, Coinfomania reported that the Solana-based lending protocol MarginFi has surpassed a total value locked (TVL) of over $50 million.
In another report, Drift protocol, a Solana-based decentralized finance (DeFi) project, attained a new TVL of over $20 million.
Another factor that has contributed to Solana’s ecosystem growth is the performance of the SOL cryptocurrency. Last month, a year-to-date (YTD) study revealed that SOL has emerged as the best-performing crypto asset with a 216% increase, surpassing major cryptocurrencies like BTC and ETH.
Presently, SOL has seen even more increases amid the ongoing week-long Breakpoint event held in Amsterdam, Netherlands. At the event, which ends today, Amazon Web Services (AWS) announced the launch of a Node Runner app that eases the technicalities involved in running a Solana validator node.
At the time of writing, SOL trades at $38.7.
