Raydium, the top decentralized exchange (DEX) on the Solana ecosystem, has surpassed other top competitors in fees generated this year.
Raydium, a prominent decentralized exchange (DEX) operating within the Solana ecosystem, has outpaced major competitors like Uniswap and PancakeSwap in terms of fees generated this year, according to TokenTerminal data.
As of Monday, Raydium had amassed $820 million in fees, placing it as the third largest cryptocurrency company in terms of fees collected, trailing closely behind Tether and Tron.
For context, Uniswap, the leading DEX, generated $361 million in fees, while PancakeSwap, the top decentralized exchange on the Binance Smart Chain, collected $182 million in fees. Notably, Solana and Ethereum generated $441 million and $361 million in fees, respectively.
Despite the Raydium network handling transactions worth over $124 billion in January alone, following the launches of the Trump and Melania meme coins, the volume has since decreased.
While Raydium's best month was January, with over $124 billion in transactions processed, the past few months have seen a moderation in the volume trajectory, particularly due to the crash of most Solana meme coins. Their collective market cap peaked at over $30 billion in January before plummeting to $6 billion in April. However, a recent surge in Solana meme coins has seen the total market cap rebound to $15 billion.
Despite this downturn, Raydium's volume is showing signs of recovery. In August alone, Raydium has facilitated $17.5 billion in transactions, marking an increase from the $17.1 billion handled in July.
Like other companies in the decentralized exchange industry, Raydium generates revenue through transaction costs. The exchange charges a 0.25% trading fee for each swap, with 0.22% being distributed to liquidity providers and the remaining 0.03% allocated for RAY token buybacks.
However, the RAY token price has seen a decline this year despite the strong network growth. The RAY token price has dropped from a high of $8.67 in November to $3.10 today, reducing its fully diluted valuation (FDV) to $1.7 billion, which is less than Uniswap's $5.94 billion FDV.
