Solana's decentralized finance (DeFi) ecosystem has recorded explosive growth recently, with several key governance tokens posting substantial gains. Over the past two weeks, JUP surged by 57%, RAY saw a maximum increase of 102%, and ORCA climbed 33%. This raises an important question: Is this growth solely driven by meme coins, or are there deeper factors at play?
DeFi Transaction Volume Jumps 259% in a Month
The rally in Solana DeFi tokens correlates strongly with on-chain data. On September 24, the total DeFi trading volume on Solana stood at $2.8 billion. By October 24, that figure had risen sharply to $7.27 billion—a 259% increase in just one month. Solana has now surpassed Ethereum to become the blockchain with the highest DeFi trading volume.
A significant portion of this activity—nearly 80%—comes from meme coin trading. According to data from Blockworks, on October 24, 53.5% of Solana DEX volume was linked to meme coins launched via Pump.fun, while an additional 24.2% came from other meme tokens. Raydium emerged as the dominant platform, capturing 65.9% of the total market share.
Much of this activity surge began around October 11, coinciding with the rapid rise of GOAT, a meme token created on October 10 that skyrocketed 153x the following day. Meme coins have clearly become the primary engine behind Solana’s recent DeFi expansion.
Whale Activity Dominates Trading Volume
A closer look at address activity reveals a notable concentration of trading power. On October 23, addresses conducting transactions under $10 accounted for 4.48 million of the 5.38 million active addresses—roughly 83% of all participants. In contrast, only 26,000 addresses conducted trades exceeding $500,000, representing just 0.4% of active users.
However, these larger players dominate volume. On the same day, addresses with trades over $500,000 were responsible for $3.11 billion in volume, accounting for 73% of the total DEX volume of $4.25 billion. Meanwhile, addresses with under $10 in trades contributed only $58,000—approximately 0.01% of the total.
While the majority of users are retail traders, the vast majority of volume comes from a small number of high-value addresses. Most retail trading occurs on Raydium, where 84% of sub-$10 transactions take place. Larger traders are active across platforms like Raydium and Orca. Given that 74% of Solana’s DEX volume comes from meme trading, it’s clear that both retail and institutional participants are heavily engaged in meme coin speculation.
Jupiter’s Strategic Moves Drive Engagement
Jupiter, Solana’s leading DEX aggregator, has played a key role in boosting ecosystem activity through a series of strategic updates. On October 8, the platform launched a new mobile application featuring zero platform fees and built-in on-ramp capabilities supporting Apple Pay and credit card payments. This move significantly eased entry for new users seeking convenient fiat-to-crypto pathways.
On October 17, Jupiter introduced “Ape Pro,” a dedicated Memecoin Terminal offering MEV protection to mitigate sandwich attacks. Combined with the October 21 announcement of Q3 staking rewards, these initiatives helped Jupiter’s trading volume grow from $790 million on October 6 to $2.4 billion on October 24—a threefold increase. Unsurprisingly, JUP’s price climbed 57% between October 11 and October 24, outperforming many major tokens.
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Raydium Rides the Meme Wave
Raydium’s native token, RAY, also posted impressive gains, rising 102% between October 10 and October 24. Unlike Jupiter, Raydium didn’t roll out major upgrades; its growth was largely organic, fueled by meme coin mania. The launch of GOAT on October 10 alone generated nearly $1.5 billion in trading volume. Raydium’s daily trading volume grew exponentially from around $1 billion in early October to over $3 billion by October 24. On October 23, the platform announced a cumulative trading volume exceeding $300 billion, with $620 million earned by liquidity providers. Additionally, Raydium revealed a $50 million RAY token buyback program, further boosting investor confidence.
Orca Seeks a Comeback Amid Competition
Orca, once a market leader, has seen its share decline significantly. Six months ago, Orca and Raydium each held around 35% of Solana’s DEX volume. Today, Orca’s share has fallen to 10–15%, while Raydium’s dominance continues to grow—due in large part to its integration with Pump.fun. Orca’s remaining volume is mostly sustained by larger traders. In an effort to regain market relevance, Orca partnered with GoFundMeme, a new token launch platform, on October 23. Orca publicly endorsed the platform, indicating a strategic shift toward capturing more meme-driven activity.
Lifinity Gains Traction with Innovative Products
Lifinity, an active market maker on Solana that uses oracle-based pricing, has also seen notable growth. Starting October 14, its trading volume grew from under $100 million to $363 million by October 23—a threefold increase in under two weeks. While much of the activity is focused on SOL staking tokens and stablecoin pairs, Lifinity’s yield protocol Sandglass may also be driving interest. On October 24, Sandglass announced fixed returns exceeding 9% for USDC deposits, likely attracting yield-seeking participants.
Conclusion: A Meme-Fueled Expansion with Uncertain Longevity
Solana’s current DeFi growth is undeniably propelled by meme coin trading, particularly tokens linked to AI narratives. While total value locked (TVL) has increased, the change has been modest compared to trading volume spikes. The question remains: How sustainable is a boom largely dependent on speculative meme trading? Yet, meme-driven cycles are becoming a recurring theme on Solana. Each wave seems to introduce a new narrative—whether it’s AI, gaming, or something else entirely.
Frequently Asked Questions
What caused Solana DeFi trading volume to increase by 259%?
The surge was primarily driven by meme coin trading, especially tokens launched through platforms like Pump.fun. The rapid rise of tokens such as GOAT attracted substantial trading activity, boosting overall volume.
How are whales influencing Solana’s DeFi activity?
Despite making up only 0.4% of active addresses, high-volume traders account for over 73% of total trading volume. This indicates that large transactions—many involving meme coins—dominate Solana’s DeFi landscape.
Is Solana’s growth solely reliant on meme trends?
While meme coins are currently the main catalyst, projects like Jupiter and Lifinity are introducing functional upgrades such as improved user onboarding and yield-generation products. These innovations may help diversify growth drivers in the future.
What is Jupiter’s role in Solana’s ecosystem?
Jupiter acts as a leading DEX aggregator, improving trade execution and offering user-friendly features like mobile access and fiat integration. Its recent developments have contributed significantly to ecosystem engagement.
How is Raydium maintaining its market share?
Raydium benefits deeply from its integration with meme launch platforms like Pump.fun. Its growing volume has allowed it to initiate token buybacks and reward liquidity providers, strengthening its market position.
Can Orca recover its lost market share?
Orca is attempting to rebound by partnering with new token launch platforms such as GoFundMeme. Whether this strategy succeeds may depend on its ability to attract meme creators and traders away from Raydium.