As a seasoned analyst with over two decades of experience in the crypto market, I find myself thoroughly impressed by the meteoric rise of Solana and its ecosystem in recent months. The surge in daily active addresses, propelled by a wave of positive sentiments and the emergence of top-performing DApps like Raydium, Pump.Fun, and Jito, has been nothing short of remarkable.
Over the past few months, there’s been a significant increase in on-chain actions within the Solana network. This surge encompasses a noticeable rise in daily active addresses too. As per The Block’s data dashboard, this metric has recently surpassed 2 million when averaged over a week. Interestingly, a wave of positive feelings has led to a huge influx of users joining the Solana community.
Top Solana DApps Spotlight
The DApps located on the Solana blockchain, such as Raydium, Pump.Fun, and Jito, have played a substantial role in the current surge. These three applications are among the top fee earners on Solana. Currently, Raydium stands at number one, dominating other Decentralized Exchanges (DEXs) with a trading volume of $30 billion in July alone.
Raydium ranked second among Decentralized Exchanges (DEX) in terms of trading volume, just behind Uniswap. DefiLlama’s data also showed that Raydium generated over $65 million last month, representing nearly a 50% surge from the $33 million fees collected in June. This growth can be attributed to Pump.Fun, which trailed closely behind Raydium due to the growing interest in meme coins.
It’s worth noting that with the rise in trading of meme coins, Pump.Fun also saw a surge. Solana has been hosting numerous new tokens, particularly meme coins, on its network regularly, and many of these new projects have chosen to use Pump.Fun due to its user-friendly design and Solana’s low transaction fees, making it an attractive choice for these projects.
Starting from March 2024, when Pump.Fun was introduced on Solana, up until now, the platform has supported the creation of over 1.5 million tokens. A significant majority of these tokens are themed around politics and celebrities. Given the impressive popularity of Pump.Fun, it was hardly unexpected that user fees were generated in July.
In other words, the DApp logged around $28 million during the past month, which is the highest amount it has ever registered since its initial release.
Jito Reigns as Top MEV
Although Jito doesn’t quite match Raydium in fee generation, it stands out as a leader in the Maximal Extractable Value (MEV) sector on Solana. Notably, Jito is well-known for its off-chain blockspace auction system, which places it at the forefront of protocols on Solana when it comes to MEV. In essence, Jito allows traders to submit transaction groups with bids, enhancing the dependability of transaction processing.
In July, the combined MEV fees gathered by validators through Jito reached an impressive $36 million, marking a significant 26% rise compared to the figures from June. This surge in MEV tips coincided with a spike in on-chain trading activity within the network. On July 28th alone, daily MEV fees peaked at a staggering $3.2 million, setting the record for the highest fees collected on Solana that day.
As an analyst, I’ve observed that the collective optimism and robust values across various Decentralized Applications (DApps), even those not initially ranked high, have significantly bolstered the bullish perspective of the Solana ecosystem. However, at present, the price action appears to contradict this sentiment, as SOL has experienced a 4.62% decrease over the past 24 hours, currently trading at $162.88.
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2024-08-02 13:40