Skyrocketing DEX Token Values Fueled by Meme Coin Enthusiasm Reach All-Time Highs
In the rapidly evolving world of decentralized finance (DeFi), two blockchain networks, Solana and Base, have emerged as significant players. They now hold a prominent position among the top 5 chains by Decentralized Exchange (DEX) volume.
March was a record-breaking month for DEX volume, with over $260 billion worth of tokens changing hands on over 1,000 DEXs. This surge can be attributed, in part, to the rise of meme coins, which have become a notable player in DEX activity on both Solana and Base.
The US-based crypto exchange Coinbase, which supports the Base chain, has played a crucial role in the development and rise of new tokens on decentralized exchanges associated with Base. As a result, Base, a layer-2 chain backed by Coinbase, has seen a tenfold increase in its monthly DEX volume, reaching almost $8 billion in March.
The surge in the issuance of new tokens is also associated with an increase in DEX volumes. In fact, Solana and Base account for over 85% of all the new tokens listed on DEXs, and a large portion of these are meme coins.
Interest in meme coins is increasing, leading to an increase in the trading of meme tokens on DEXs. Some of the top 10 most actively traded meme coins on Base DEXs include Based Shiba Inu, BLERF, Based Peng, and Base Boy.
The total value locked (TVL) on Base projects has also surged, with a large portion attributed to meme coins. What was $400 million at the beginning of 2024 has now reached a record $1.5 billion as of this writing.
While Ethereum DEXs handled over $77 billion in trading volume in March, Solana came second at over $60 billion. However, the growth rate and focus on meme coins on Solana and Base DEXs make them exciting spaces to watch in the evolving DeFi landscape.
In conclusion, the emergence of meme coins and the surge in their issuance on Solana and Base DEXs have been key drivers in the influx of new tokens and the rise in DEX volumes. As we move forward, it will be interesting to see how this trend continues to shape the crypto landscape.
