Lifinity Flips Orca in 24HR DEX Volume - Is $LFNTY Undervalued?

Lifinity, one of Solana’s oldest DeFi protocols, appears to be returning to prominence and reclaiming market share from its rivals.

Beyond the Lifinity DEX, the protocol’s wider product suite continues to expand. Sandglass, Lifinity’s yield-trading platform, is steadily increasing its TVL (Total Value Locked) as network participants explore Solana’s DeFi scene more deeply.

What does Lifinity’s rising market share mean for its native token $LFNTY?

Lifinty Reclaims Market Share as Meme Volume Drops

November was a historic month for Solana DeFi. The network secured a new all-time high in monthly DEX volume with over $129B in onchain trading, breaking the Ethereum Layer-1’s May 2012 record.

In the wake of November’s euphoria, December’s has begun with diminishing volume in memecoin markets. Established decentralized exchanges with high memecoin liquidity have suffered sharp drops in market share, with Raydium and Orca down 37% and 30% respectively in weekly trading volume.

Meanwhile, Lifinity’s trading volume has remained remarkably solid, witnessing a mere 2.9% drop in volume. Unlike its rivals, Lifinity’s liquidity focuses predominantly in SOL/USD pairs, offering some of the highest levels of capital efficiency in the ecosystem. 

Despite only holding $14M in TVL, Lifinity (pictured above in red) constituted over 19% of Solana DEX volume over the past 24 hours, flipping Orca in market share. 

According to DefiLlama data, Lifinity’s Volume/TVL ratio is significantly higher than Raydium and Orca, suggesting the platform offers some of the best rates on Solana/USD trades on the network.

Beyond the Lifinity DEX’s growing dominance, the wider Lifinty product suite is starting gain traction. Sandglass, the protocol’s yield-trading platform has recently integrated Kamino Finance lending markets and attracted over $9M in TVL.

Is $LFNTY Undervalued?

Lifinity is one of Solana’s oldest DeFi protocols, yet many network participants are somewhat unaware of the crucial role it plays in the ecosystem. With Lifinity’s surging DEX volume, traders on social media are beginning to ask if the protocol is undervalued when compared to its rivals.

At press time, Lifinity’s native token $LFNTY currently sits at a market capitalization of just over $20M. This is a dramatically lower valuation than rivals $ORCA ($172M) and $RAY ($1.5B), despite Lifinity flipping Orca in 24-hour market dominance and commanding over 19% of onchain dex volume.

However, Lifinity’s newfound dominance is unlikely to last if Solana’s memecoin economy returns. According to Blockworks data, Solana memecoin trading dominance has dropped from 83.9% on November 30th to 73.7% on December 2nd.

Regardless of $LFNTY’s valuation relative to its competitors, the Lifinity protocol contributes a critical service to Solana DeFi, facilitating heightened capital efficiency on SOL/USD swaps and ensuring smooth trades across the ecosystem.

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