8 hours 25 hours ▪ 3 minutes read ▪ Written by Michael A.
There is fierce competition in the blockchain field. Who will dethrone Ethereum? One of the most ambitious competitors, Solana is leading the dance and making more and more progress. Recent numbers show that Solana’s DEX (decentralized exchange) activity is outpacing Ethereum mainnet activity, an achievement made possible thanks to developer efforts and the rise of Raydium. is.
Solana leads in DEX
Solana News: Since the beginning of this year, Solana’s DEX trading volume has increased dramatically, reaching 168% of Ethereum mainnet. This progress has been marked by impressive market share gains. Even though in January Raydium only accounted for 7.6% of trading volume, it now holds 18.4% market share in the Solana DEX universe.
Solana and Ethereum DEX weekly volume – Source: The Block
Ethereum giant Uniswap maintains its dominance, but for how long?
The reasons for this rise are multiple.
Solana DEX weekly volume: 168% of Ethereum. Radium: $22.3 billion in October. Uniswap (Ethereum): $38 billion. Raydium’s market share growth: from 7.6% to 18.4% since January.
If the volumes are impressive, it should also be noted that Ethereum seems to favor more established cryptos, while Solana is attracting trading in newer tokens, especially “pump.fun”. This difference could make these two ecosystems more complementary than actual rivals.
Why are decentralized cryptocurrency exchanges on the rise?
Solana’s DEX rise is no coincidence. With the rise of artificial intelligence and the creation of tokens by agents like Truth Terminal, the market is fueled by new trends and curiosities. Whether on social media or on the blockchain, these generated tokens attract attention, drive intense activity, and drive users to Solana and its dynamic ecosystem.
However, despite these record numbers, it’s important to take a step back. Volume alone is not enough to determine the health of a blockchain. Ethereum has benefited from Layer 2, with on-chain activity increasing significantly in the first half of 2024, and overall activity increasing further. User behavior is also different. While Ethereum attracts an audience looking for stability, Solana has established itself in high-frequency trading.
Therefore, Solana recently surpassed Ethereum in terms of fees incurred per day, amounting to $2.54 million compared to Ethereum’s $2.07 million. The coming months promise to be exciting.
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Micaiah A.
Blockchain and virtual currency revolution! Affect the fragile social situation, have a serious impact on the economic society, and solve the problems of your choice.
Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.
