Solana crushes Ethereum in terms of volume, recording $6.24 billion in daily DEX trades compared to Ethereum’s $850 million. Solana has outpaced Ethereum in 24-hour trading volume across decentralized exchanges (DEXes), as per DefiLlama data. On Sunday, Solana reported $6.24 billion in trading volume, dwarfing Ethereum’s $850 million.
Raydium, a Solana-based automated market maker (AMM), recorded the highest daily volume at $4.2 billion. In comparison, Ethereum’s leading DEX, Uniswap, managed $1.52 billion in the same period. Other Solana-based DEXes, such as Orca and Aerodrome Finance, ranked among the top five, registering $1.07 billion and $712 million, respectively.
Overall, five Solana DEXes achieved daily volumes exceeding $100 million. Solana’s weekly DEX trading volume also surpassed Ethereum’s and all of the layer-2 solutions combined.
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SOL Market Cap Soars
With Raydium leading the way, Solana crushes Ethereum in terms of volume by dominating the decentralized exchange market. Solana’s native token, SOL, recently regained a market cap of over $100 billion. It currently stands at $116 billion, following an 18% price increase over the past week. Ethereum, valued at $380 billion, saw a marginal 0.5% price rise during the same period.
Crypto analyst Cygaar attributed Solana’s success to its user-centric approach. He highlighted that while Ethereum emphasizes infrastructure, Solana focuses on applications and user experience. This shift in priorities has resonated with users, boosting Solana’s adoption.
Solana’s Price Breaks Records
SOL has extended its rally, climbing 45% in two weeks to trade at $242.80. The token shows strong bullish momentum, with technical analysis pointing to a potential all-time high of $276.
On-chain data indicates growing interest in Solana. Open Interest (OI) reached a record $5.64 billion, signaling new investments. Weekly trading volume surged to $41.6 billion, its highest since Solana’s launch in 2020.
Additionally, the platform generated $49.64 million in fees last week, marking a new record and underscoring its growing liquidity and user engagement.
Technical Breakout Signals New Highs
Weekly data reveals that Solana crushes Ethereum in terms of volume, surpassing Ethereum and all layer-2 solutions combined. The weekly chart reveals a breakout from a downward-sloping channel pattern near $210.18. SOL’s price has since gained momentum, breaking past the yearly high of $210.18. The pattern’s technical target suggests a new all-time high of $276.
The Relative Strength Index (RSI) stands at 69, indicating strong bullish momentum while staying below overbought levels.
Solana’s growth is driven by its focus on usability and its strong on-chain performance. With increasing trading volumes, record fees, and a positive market sentiment, SOL is poised for continued success in the crypto space.
Strengths and Advantages
Solana’s ability to surpass Ethereum in daily DEX trading volume highlights its growing dominance in the blockchain space. The platform’s focus on user experience and application-based development resonates well with end-users, as evidenced by the success of exchanges like Raydium and Orca. Unlike Ethereum, which continues to emphasize infrastructure, Solana’s approach makes decentralized finance (DeFi) more accessible.
On-chain metrics such as record-high Open Interest and surging trading volume further indicate a robust ecosystem. The recent spike in fees underscores increased network activity, suggesting that Solana is becoming a preferred choice for traders and developers alike. Its lower transaction costs and faster processing times compared to Ethereum are significant competitive advantages, especially for high-frequency trading applications.
Challenges
Despite these strengths, there are concerns about Solana’s long-term stability and its reliance on centralized components. Critics argue that while Solana offers speed and scalability, it often sacrifices decentralization, a core principle of blockchain technology. This trade-off could make the network more vulnerable to security risks and centralized control.
Solana’s bullish market performance is partially driven by speculative trading. The rise in Open Interest and fees reflects heightened market activity but may not necessarily indicate sustainable growth. Crypto markets are highly volatile, and Solana’s price rally could face significant corrections if broader market sentiment shifts.
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