By 24-hour fees, Raydium on Solana has risen to become one of the top seven protocols, surpassing networks and initiatives like Maker, Arbitrum, and even Aave. The surge in value may be ascribed to a noteworthy meme coin uprising inside the Solana ecosystem, which used Ethereum’s recent underwhelming performance and the market’s desire for assets with high risk and big return.
Trading meme coins has always been linked to significant volatility and speculation. In an effort to preserve their risk exposure, some cryptocurrency traders have shifted their focus and resources away from bigger, more well-known assets like Ethereum and Bitcoin and into alternative chains and their native tokens.
Particularly alluring on sites such as Solana are these meme currencies, which can provide significant returns in the short time. Solana, which is renowned for its fast throughput and cheap transaction costs, has created the perfect atmosphere for the development of decentralised exchanges such as Raydium. This increase in trading volume and the platform’s increasing use in the midst of the volatility of the wider cryptocurrency market is reflected in Raydium’s surge in fee revenue.
Raydium demonstrates how trader preferences change during market downturns as it rises on the protocol fee leaderboard. Trading activity has historically tended to flow back to more established chains, which are seen as “proper” because of their size and stability, as the higher cap assets begin to appreciate. On other chains like Solana, this change usually means less activity and costs for DEXs.
For the time being, Raydium’s performance is evidence of Solana’s ability to identify and interact with a market that is dominated by traders’ need for assets with large price fluctuations. This is a difficult balance, though, since larger chains may provide competing alternatives for high volatility trading or market sentiment may move towards a preference for stability. In order to maintain their fee supremacy and user base, platforms like Raydium will need to consistently innovate.
