Bitrabo Editorial
As of early September, activity in Decentralized Finance (DeFi) appears to be on the decline. Data from DeFiLlama shows that all major DeFi platforms, particularly on Ethereum and Solana, are managing assets valued at approximately $77 billion, with Ethereum holding a significant lead in total value locked (TVL).
Raydium Leads in Solana’s DeFi Market
Despite the overall decline, Solana’s DeFi sector is thriving. Raydium, a prominent decentralized exchange (DEX) on Solana, has established itself as a leading DeFi protocol within the ecosystem.
Insights from Artemis indicate that Raydium commands a substantial 60% market share, with an impressive average of over 200,000 active users daily. This positions Raydium as the most utilized DeFi protocol, outpacing competitors like Jupiter.
The growth in user engagement has led to a significant rise in daily active addresses, reaching an average of 5.5 million users—marking the highest level recorded. This robust user engagement indicates that, despite Ethereum’s advancements and its layer-2 solutions, they are facing stiffer competition from Solana’s thriving protocols.
Solana’s base layer offers better scalability than the layer-2 solutions available for Ethereum, resulting in higher performance and reliability. Unlike Ethereum’s off-chain systems, which are prone to vulnerabilities and centralization, Solana’s approach emphasizes solid and efficient throughput.
Significant Drop in Gas Fees and Shift in Meme Coin Activity
Curiously, while daily active addresses are increasing, gas fees are experiencing a steep decline. As of September 7, revenue from gas fees fell to its lowest point in half a year, approximating $414,000.
While there was a brief recovery in revenue, it still pales compared to the $5 million recorded on March 18, based on data from TokenTerminal data.
The decreasing gas fees might be linked to a decline in interest in Pump.fun, a meme coin launchpad on Solana. In recent weeks, the fees generated from this platform have decreased significantly—over 80% from their peak of over $2.31 million in late July—to about $319,000 by September 7, according to DeFiLlama.
Additionally, the interest in meme coins appears to be migrating to Tron, another high-capacity blockchain. The launch of SunPump, a new meme coin launchpad in August, coincided with the decline of Pump.fun’s activity, impacting the daily fees on Solana.