DRIFT Token Jumps 30% After Protocol Hits Record Perpetual Volume Exceeding $1B

Summary:
The DRIFT token, which operates on the Solana-based Drift Protocol, has experienced notable growth, surging over 40% following a remarkable achievement of surpassing $1 billion in daily trading volume for the first time. This spike has positioned Drift as a significant player in the decentralized exchange (DEX) market.

Key Takeaways:

DRIFT token surged by over 40% following a record trading volume of $1 billion.
Drift has briefly claimed the title of the second-largest perpetual DEX by volume.
The platform's strategy of zero-fee ETH perpetuals seems to significantly boost activity.
Total value locked (TVL) in Drift currently stands at approximately $1.13 billion.

Drift DEX cover image

Significant Growth for Drift Protocol

The DRIFT token, linked to the Solana-based perpetual exchange known as Drift Protocol, saw an impressive increase of over 40% on Monday. However, it retraced slightly after achieving a milestone of over $1 billion in daily trading volume for the first time over the weekend.

The surge in the token started when Drift momentarily ranked as the second-largest perpetual DEX by volume across all blockchain platforms, while also becoming the leading DEX on the Solana network, as reported by DefiLlama. This volume spike on July 18 reached $1.089 billion, surpassing its previous record high from April 2024, when Drift recorded around $720 million in perpetual trading within a single day.

As of the latest updates, however, the Drift Protocol now ranks fourth in terms of daily trading volume for perpetuals across all chains. The current leaders in this sector include edgeX, Jupiter, and Hyperliquid, with Hyperliquid at the front with over $13 billion in daily perpetual trading volumes, while Jupiter just falls shy of $1 billion.

Rising Trading Volume and Market Interest

With the surge in trading activity on the platform, the price of DRIFT rose to a peak of $0.73, reflecting an increase of over 33%. Additionally, the trading volume for the token skyrocketed more than 2,800%, reaching $323 million, according to data from CoinGecko.

Drift's total value locked (TVL) is approximately $1.13 billion, with a significant portion likely derived from its innovative Drift Earn program. This program allows users to earn yields through lending and market-making activities on the platform.

The latest increase in activity seems to be connected to a strategic move made by Drift in early July. On July 10, the protocol launched zero-fee ETH perpetual contracts with up to 101x leverage. This means that traders can open large positions without incurring any trading fees.

In the days following this rollout, Solana's overall perpetual futures trading volumes experienced a remarkable surge of 234%, indicating a strong response from traders to the platform's zero-fee and high-leverage offerings.

In conclusion, Drift’s recent developments and innovative trading strategies have contributed significantly to its rapid growth, making it a noteworthy player in the blockchain and cryptocurrency landscape.