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A month in review: Solana’s DeFi protocols break new ground

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Over the past 30 days, there has been a notable shift in the performance of DeFi protocols on Solana. Orca, a decentralized exchange, witnessed a growth of 85.5% in Daily Active Users (DAU), increasing from 7,600 to 14,100. In contrast, the number of active users on Raydium, a Solana-based AMM, surged by 161.2%, from 6,700 to 17,500.

Dooar Swap experienced a modest growth of 41.9%, with DAU numbers rising from 3,100 to 4,400. Meanwhile, Serum saw a significant increase of 153.8%, moving from 2,600 to 6,600.

solana defi protocols dau october
Chart showing the Daily Active Users (DAUs) on Solana’s DeFi protocols from Oct. 3 to Nov. 1, 2023 (Source: Dune Analytics)

While the absolute numbers of DAUs have increased for all protocols, their relative share among all users on Solana has seen some shifts. Orca’s share decreased from 30% to 26%, Raydium’s share grew from 27% to 32%, Dooar Swap’s share saw a decline from 12.4% to 8.2%, and Serum’s share experienced a slight increase from 11.2% to 12.5%.

solana defi protocols DAU october percentage
Graph showing the number of Daily Active Users (DAUs) on Solana’s DeFi protocols as a percentage of all users from Oct. 3 to Nov. 1, 2023 (Source: Dune Analytics)

In terms of transactions, Orca’s share of transactions increased from 34.3% to 40%. Raydium’s share saw a significant rise from 18.2% to 35.3%.

The price of Solana’s native token, SOL, almost doubled, moving from $23.4 to $43.4. Raydium’s RAY token increased from $0.02 to $0.3. Orca’s ORCA token also saw a notable appreciation, moving from $0.88 to $1.44.

solana raydium orca 1m price
Graph showing the percentage increase for Solana (SOL), Raydium (RAY), and Orca (ORCA) from Oct. 3 to Nov. 1, 2023 (Source: TradingView)

The data indicates a robust growth in user adoption for the DeFi protocols on Solana, especially for Raydium and Serum. The significant increase in DAU for these protocols suggests a growing trust and interest in their offerings. The shift in DAU as a percentage of all users indicates a dynamic and competitive landscape.

While Orca and Dooar Swap saw a decline in their relative share, Raydium and Serum captured a larger user base. The transaction volume data further underscores Orca and Raydium’s dominance in the Solana ecosystem. Their increasing share of transactions suggests that these platforms are becoming central to the Solana DeFi landscape.

The price appreciation of SOL, RAY, and ORCA tokens indicates bullish sentiment in the market for Solana and its associated protocols. However, such rapid price increases should be cautiously approached, as they can also indicate speculative bubbles. Solana’s ecosystem is thriving, with its DeFi protocols experiencing substantial growth in user adoption and transaction volume.

While this growth is commendable, it’s essential to approach such data with a healthy dose of skepticism. Rapid increases, especially in token prices, can sometimes be driven by speculative forces rather than genuine adoption or utility.

The post A month in review: Solana’s DeFi protocols break new ground appeared first on CryptoSlate.

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