Solana Surges Ahead in DEX Volume, Outpacing Ethereum
In a striking turn of events, Solana is set to continue its impressive four-month streak of outperforming Ethereum and other smart-contract blockchains in the realm of decentralized-exchange (DEX) volume. This surge comes despite a relatively stagnant crypto market that has struggled to ignite trader enthusiasm.
According to data from DeFiLlama, Solana-based DEXs have recorded a total trading volume exceeding $60 million this month, which is nearly double the $34 million generated by Ethereum, the leading smart-contract blockchain.
Tagus Capital notes, “Solana’s lower transaction fees and higher throughput are significant factors attracting both developers and users, thereby underscoring its expanding influence in the decentralized finance (DeFi) space.”
Since claiming the top position in October, Solana has not looked back. A remarkable achievement was noted in January when Solana-based DEXs amassed a staggering $258 billion in trading volume, leaving Ethereum trailing with only $86 billion.
Furthermore, Solana’s dominance in the DEX market is not solely defined by transaction volume. Despite its reputation as a cost-effective blockchain, Solana has generated approximately $25 million in revenue this month, outpacing Ethereum’s $16 million. In January, Solana’s revenue reached $124 million, compared to Ethereum’s $109 million.
This impressive performance bolsters the bullish outlook for the SOL-ETH ratio, which peaked near 0.09 in January, although it has since retraced to around 0.075, as indicated by data from the charting platform TradingView.
However, despite these achievements, Tagus Capital points out that Solana’s total value locked (TVL) stands at $9 billion, which remains significantly lower than Ethereum’s substantial $57 billion.
