Solana‘s performance in the decentralized finance (DeFi) sector over the past month has been nothing short of spectacular, especially when considering its position at the beginning of the year. On Christmas Day, the number of daily transactions on the Solana network soared to 9.25 million, a stark contrast to Ethereum‘s 135,000 transactions on the same day, highlighting an incredible growth trajectory.
Crypto swaps, which allow the exchange of one cryptocurrency for another without converting to a stablecoin, continue to play a significant role in the DeFi sector. The increasing use of these swaps is becoming a more prominent indicator of a protocol’s growth. Solana’s significant transaction volume in this area is a testament to the growing trust and demand for DeFi protocols, including decentralized exchanges (DEXs), indicating a shift in the DeFi landscape and Solana’s growing influence.
A closer look at the performance of Solana-based DEXs reveals that the growth is not just in price but also in investor sentiment. According to data from DeFiLlama, DEXs on Solana experienced an astonishing $10.74 billion in transaction volume over the past week, surpassing Ethereum for the first time since its inception.
December was a record-breaking month for DEX activity connected to Solana, with transactions exceeding $24 billion. This represents a threefold increase compared to November, reflecting a significant rise in activity and interest in Solana’s DeFi offerings from investors.
Aside from the frenzy in DEXs during the last part of the year, there has also been a notable increase in the USD value of cryptocurrencies locked in Solana’s DeFi projects. The total value locked (TVL) on Solana more than doubled last month, reaching $2.19 billion. This growth is not solely attributable to the price of SOL, as there was also a 5.6% increase in TVL denominated in SOL over the week.
As the year draws to a close, a price pullback is occurring within 24 hours, likely due to investors taking profits. Nevertheless, SOL has had an impressive end to the year, achieving an 87% gain over the past month, continuing to meet the positive expectations of investors.
