- Solana has surpassed Ethereum and Base in 24-hour DEX trading volume, with its DeFi ecosystem growing rapidly, driven by platforms like Raydium and memecoin trading.
- While SOL shows strong internal momentum, breaking the $220 price level will require favorable market conditions and continued network adoption.
The Solana network has recently emerged as a dominant force in decentralized finance (DeFi), surpassing Ethereum and Base in 24-hour decentralized exchange (DEX) trading volume. According to DefiLlama, Solana-based DEXs recorded nearly $3.8 billion in trading volume on January 6, dwarfing Ethereum’s $1.7 billion and Base’s $1.2 billion. This milestone underscores Solana’s growing influence and competitiveness in the DeFi ecosystem.
Solana’s DeFi Surge: Metrics and Performance
Solana’s remarkable growth in decentralized trading is reflected in its total value locked (TVL), which has surged from $1.4 billion in 2024 to approximately $12 billion at the start of 2025. This nearly 9x growth highlights increasing investor confidence and liquidity in Solana’s ecosystem. The rise of platforms like Raydium, Solana’s leading DEX, has played a pivotal role, with Raydium’s daily trading volume exceeding $3 billion by year-end 2024, a 10-fold increase since January.
Interestingly, memecoin trading has become a significant driver of Solana’s activity. In November, memecoins accounted for 65% of Raydium’s monthly volume. Platforms like Pump.fun, Solana’s premier memecoin marketplace, further contribute to the network’s traction, generating $250 million in trading volume over the past month. These developments position Solana as a dynamic player in the DeFi space.
Can SOL Reach $220?
From a price perspective, Solana’s native token, SOL, has outperformed Ethereum’s Ether (ETH) significantly, achieving an eightfold price increase since 2023. Starting 2025 at $190, SOL quickly surged to $215, fueled by bullish technical indicators such as rising network fees, increased staking yields, and a favorable market environment. Open Interest (OI) has also seen a dramatic 22.38% increase in just one week, signaling heightened investor interest.
Despite its robust internal metrics, Solana faces external challenges. The broader cryptocurrency market, led by Bitcoin’s march toward $100,000, has introduced volatility, impacting SOL/BTC trading pairs. This dynamic raises questions about whether Solana’s recent rally represents a sustained trend or a temporary spike.
A Breakthrough or a Bottleneck?
To surpass the critical $220 price level, the digital asset will need a confluence of bullish internal developments and supportive external market conditions. The network’s cutting-edge technology, coupled with its expanding DeFi ecosystem, provides a strong foundation. However, competition from Ethereum and Base, along with external market trends, could pose significant hurdles.
In conclusion, the meme coin’s rapid rise in DEX trading volume and TVL signals its potential to challenge Ethereum’s dominance in DeFi. While the road to $220 is not guaranteed, SOL’s impressive performance positions it as a key contender in the crypto market’s evolving landscape. If it can maintain its momentum and weather external pressures, a breakout could be on the horizon.
