- Memecoins fuel 75-90% of Solana’s transaction fees.
- Solana’s DEX activity peaks during U.S. Pacific hours, unlike Ethereum and Bitcoin.
- Solana’s fee model keeps costs low for typical users while generating steady revenue.
Solana’s decentralized exchange (DEX) ecosystem has skyrocketed, largely driven by the rising popularity of meme coins. Meme coins account for an impressive 75-90% of Solana’s transaction fees. This trend positions Solana as a dominant force in the DEX landscape, unlike Ethereum and Bitcoin, which record peak activity at U.S. market openings. Instead, Solana’s network surges in the U.S. Pacific time zone, with users engaging heavily in memecoin transactions, driving significant fee generation.
On Oct. 24, transaction-related fees on Solana surpassed $11 million, marking a new all-time high, according to Blockworks Research data. It has also been dominating daily trading volumes in the decentralized finance (DeFi) ecosystem for 13 days straight, according to DefiLlama. The new record comes amid the rise of AI-related meme coin trading.
MooMoo Meme Coin Surges on Solana
MooMoo, a new token that powers the Cows Gone Mad NFT ecosystem, gained traction with its immersive game. Built on the Solana blockchain, the token reached a market cap of 7.7 million in less than 2 weeks. All these developments have led to a rise in network activity.
To tackle this influx, Solana uses a unique fee structure that keeps transaction costs low for non-competitive activities. On the other hand, high-demand transactions, like memecoin trades on platforms such as Raydium, incur higher fees, and standard actions such as transferring stablecoins remain cost-effective. This model strikes a balance between maintaining sustainability for revenue generation and supporting a balanced ecosystem that allows broad accessibility to blockchain applications.
Read also: Solana Tests Inverse Head and Shoulders Pattern: Is a Bullish Breakout on the Horizon?
Solana’s ability to generate revenue through DEX and meme coin activity shows how low-cost, high-efficiency blockchain transactions can be viable. This represents a significant step toward decentralized financial inclusion.
Overall, Solana’s DEX landscape continues to thrive on meme coin popularity, paving the way for a cost-effective and competitive blockchain ecosystem. As Solana diversifies further, the network is poised for continued growth, bolstering its reputation as a DEX leader driven by innovative fee structures and high-demand trading options.
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