Crypto was once a self-contained industry. The average user only heard about it at the Bitcoin (BTC) price peaks and was reluctant to invest in this new asset class. Those passionate about crypto found their way through with limited options to convert their digital coins into fiat and back.

But those days are gone. As crypto products grow in popularity, many platforms, previously entirely confined to web3, are integrating fiat bridges to open their doors to new users. 

Disruption that doesn’t benefit users 

Imagine a common type of web3 product that wants to disrupt its niche and make its service go mainstream. It describes its solution and how blockchain revolutionizes the traditional way of doing things. Then, it says: connect your web3 wallet and make sure you have enough Ethereum (ETH) to pay gas fees. If you don’t have any, set up an account on a centralized exchange and buy some.

This path is ridiculously long and bumpy for a regular non-crypto user. Centralized exchanges are still the most common way to convert fiat money into crypto, but their cumbersome interface often leaves newcomers feeling dizzy. Even for experienced users, CEXes as a gateway are not always convenient—withdrawing funds to an external platform involves multiple confirmations and extra fees. All of this creates a great deal of friction, complicating the user’s journey into web3.

Why would a DEX need a fiat gateway? 

One could argue that web3 projects aiming to go mainstream and blockchain-native platforms mostly focused on the crypto audience are different—in the sense that crypto protocols don’t really need fiat. For example, decentralized exchanges that let enthusiasts swap various L1 and L2 tokens earned in airdrops, bounty campaigns, and other activities confined to the blockchain realm.

Is that really the case? In practice, that’s not quite so. For instance, Uniswap introduced its fiat-to-crypto bridge back in December 2022 and has since partnered with various providers to expand opportunities for its users. This is a good example of how a DeFi project realized that it couldn’t reach the next level without opening a channel for inflows from the traditional economy. The move also strengthened the project’s value proposition, giving people more opportunities to safely trade in a decentralized environment.

Memecoins are another example. As the memecoin frenzy unfolded in 2024, this asset class became well-known to a wider audience, catching the attention of traditional investors. While many of them turned to centralized exchanges due to a lack of other options, the Shiba Inu (SHIB) memecoin integrated a fiat on-ramp, offering users the ability to purchase the token directly into their wallet. Investors gained an easy way to buy the asset, and the project increased the value and utility of its token.

The efforts of top crypto platforms to integrate on- and off-ramps highlight the user demand. However, they also indicate that the infrastructure for fiat-to-crypto bridges is now ready. Today, setting up an on-ramp can take just a few days using pre-built software that supports dozens of countries, payment methods, and national currencies. Good gateways are fully licensed in many regions, freeing their clients from compliance issues.

Some argue that crypto-native platforms don’t really need fiat bridges because not many people have used them so far. But what if that was the case simply because there were far too few bridges available?

We constantly think of how to make crypto more accessible. But it often doesn’t require us to reinvent the wheel—it’s about removing the friction faced by those who want to use their fiat in the crypto world. There was a time when fiat and blockchain realms barely intersected. However, as they continue to converge, only tighter integration between traditional and digital currencies will facilitate faster adoption of crypto.

Konstantins Vasilenko

Konstantins Vasilenko is a co-founder of Paybis, a pioneering fintech startup in the Baltic States, which has become a leader in the digital and cryptocurrency exchange business. Konstantin is a seasoned IT expert with over 20 years of experience spanning enterprise IT project management, CRM systems, blockchain technology, digital payments, and cryptocurrencies. Prior to Paybis, Konstantin honed his skills at Accenture. His career reflects a strong commitment to innovation and digital transformation, driving the bridge between traditional finance and the crypto economy.

Solana flipped Ethereum in its 24-hour volume in the decentralized exchange industry as most of its meme coins jumped.

According to DeFi Llama, Solana (SOL) DEX networks handled over $845 million in the last 24 hours, bringing the weekly volume to $5.17 billion. 

Ethereum (ETH) handled $747 million in the same period. Its weekly volume was over $6.4 billion. The other top chains were BNB Smart Chain and Arbitrum, which processed tokens worth $3.86 billion and $2.32 billion.

Orca has been the biggest DEX in Solana’s ecosystem in the last seven days, followed by Raydium and Phoenix. 

Solana summer

Additional data shows that March was Solana’s best month as it handled cryptocurrencies worth $60 billion during the month.

It was followed by July when it handled coins worth $56 billion as Ethereum processed coins worth $52 billion.

Solana’s volume rose because of the strong comeback of some of its meme coins in the past few days. Popcat (POPCAT) token has risen by over 25% in the last seven days, making it the best-performing top ten meme coin. 

Dogwifhat (WIF) has risen by over 9.4% in this period, pushing its market cap to over $1.72 billion. Cat In A Dogs World (MEW) rose by 16.2% while Book of Meme jumped by 8.5%. In most cases, crypto volume rises when tokens are in an uptrend.

The other notable Solana news was the strong comeback in the non-fungible token industry. Data by Cryptoslam shows that the total Solana NFTs jumped by over 35% in the last seven days to $16.7 million.

The number of buyers rose by 153% to 220,000 while the most popular NFT collections were Sorare, DeGods, and Solana Monkey Business.

Solana has also made more headlines recently. Coinbase added Solana’s ckBTC support while the developers launched PlaySolana, a handheld gaming console. 

Solana’s DEX and NFT volume rose as the SOL token bounced back. It spiked in the last six consecutive days, its highest swing since Aug. 27. 

Transaction volume in Ethereum decentralized exchanges bounced back even as cryptocurrency prices retreated.

Ethereum DEX had robust activity

According to DeFi Llama, the volume in Ethereum (ETH) rose by 18% to $9.88 billion as that in other chains retreated. Solana (SOL) DEX volume retreated by 8% while Base, BNB Smart Chain, Arbitrum, and Polygon fell by 4%, 14%, and 10%, respectively.

The worst-performing chain was Tron (TRX) whose volume fell by 52% to over $642 million. This decline happened as the popularity of the recently launched SunPump meme coins eased. According to CoinGecko, most of the SunPump tokens like Sundog, Tron Bull, and Muncat have retreated from their all-time highs.

Most DEX networks in Ethereum’s network had a big increase in volume. Uniswap’s volume rose by 14.2% to $5.7 billion after the company settled with the Commodity Futures Trading Commission over its margin products. It agreed to pay a $175,000 fine and stop offering these solutions in the US.

Curve Finance’s volume jumped by 68% to over $1.48 billion while Balancer’s, Hashflow, and Pendle rose by 68%, 196%, and 85%, respectively. 

Bitcoin and most altcoins tumbled

This volume happened in a difficult week for the crypto industry as most assets dived. Bitcoin dropped to $52,550, its lowest point since Aug. 5 and 26% below its all-time high. Ethereum also dropped below $2,200, down by over 44% from its highest point this year. The total market cap of all coins dropped below $2 trillion for the first time in months. 

There is a risk that the sell-off will continue as a sense of fear has spread in the market as the crypto fear and greed index has dropped to the fear zone of 34. Cryptocurrencies tend to see more weakness when investors are fearful.

DEX and CEX exchanges also experience weak volume in periods when cryptocurrencies are falling. According to DeFi Llama, the volume in Ethereum DEX platforms dropped to $49.5 billion in August from a high of $69 billion in March as most coins jumped. 

The same happened across other DEX platforms as volume fell from over $257 billion in March to $240 billion in August.

Looking ahead, cryptocurrencies may benefit from the upcoming start of interest rate cuts by the Federal Reserve. Data released on Friday showed that the unemployment rate fell slightly in August to 4.2% while the economy created 142k jobs. Risky assets tend to bounce back when the Fed is cutting rates.