- Solana has surpassed Ethereum in trading volume on decentralized exchanges
- Solana’s DEX volume eclipsed that of Ethereum by over $200 million
- The phenomenon is largely attributed to the ongoing meme coin craze on the blockchain
The trading volume on decentralized exchanges (DEXs) on the Solana blockchain has eclipsed that of similar platforms on the Ethereum network for the first time in the two platforms’ history. Solana’s volume exceeded that of Ethereum by over $200 million, with analysts attributing the phenomenon to the ongoing meme coin craze on the protocol. Solana’s win may however be short-lived as DEX trading volume on Ethereum has started closing the gap.
Traders Love Meme Coins and Low Transaction Fees
According to DefiLlama, DEX volume on Solana has increased by 51% in a week compared to Ethereum’s 1.40% in the same timeframe. Despite the huge gap in percentage increase, Ethereum leads in the total value locked (TVL) in its DEXs at $6.35 billion against Solana’s $496.32 million.
Apart from the BONK and Dogwifhat (WIF) meme coin craze pushing transaction volume on Solana DEXs, crypto traders also prefer the network due to its low fees. The BONK mania has led to astronomical Saga phone sales.
According to Dune analytics, the two meme coins accounted for the most activity on Solana-based DEXs in the past seven days, excluding stablecoins. WIF’s supporters believe that the coin’s 376,000% price increase in barely a month is just the start since it’s yet to go mainstream.
The rise in volume can also be attributed to Solana’s native token, SOL, continued price appreciation in value, increasing by over 25% in a week compared to Ethereum’s less than 1%. Solana blockchain supporters recently outlined that the network is also flooring Ethereum in NFT volume, noting that “it’s over” for Ethereum.
Solana in the last 24 hours:
– Flipped ETH in DEX Volume (First Time Ever)
– Has 5% of TVL, proves it is a worthless metric
– Jupiter flips Uniswap by Volume
– 4 out of 10 Top DEX are from Solana
– Solana doing 100% more NFT Volume than Ethereum
– Tensor flips BlurIt’s over.
— Gumshoe (@0xGumshoe) December 16, 2023
Volume Comes from Bots and Retail Traders
Dune however noted that bots are responsible for a considerable chunk of the volume on Solana DEXs. It also indicated that most traders on the DEXs spend less than $1,000, with only 122 traders making trades worth over $1 million within the week ending December 18.
With SOL’s price increase and the meme craze yet to cool down, it’s yet to be seen for how long Solana will maintain the lead.
