Solana’s decentralized-exchange (DEX) trading volume surges to $60 million, nearly doubling Ethereum’s $34 million in the same period. This unprecedented success has sparked a bullish case for Solana-based DEXs, with experts attributing their dominance to lower fees and higher throughput compared to other blockchains.
Solana is maintaining its pole position in terms of decentralized-exchange (DEX) trading volume, with a total of $60 million recorded this month. This figure is nearly double the $34 million on Ethereum, the largest smart-contract blockchain.
Solana is a fast, decentralized, and open-source blockchain platform.
It uses a proof-of-stake (PoS) consensus algorithm to validate transactions and achieve high transaction speeds of up to 65,000 transactions per second.
Solana's architecture allows for the creation of scalable and user-friendly applications, making it an attractive option for developers.
Founded in 2017 by Anatoly Yakovenko, Solana has gained significant attention in the blockchain industry due to its innovative approach to scalability.
The success of Solana-based DEXs can be attributed to their lower fees and higher throughput compared to other blockchains. According to DeFiLlama data, in January, Solana-based DEXs achieved a trading volume of $258 billion, leaving Ethereum’s $86 billion behind.
Solana is not only leading in terms of transaction volume but also in revenue generation. So far this month, Solana has generated $25 million in revenue, surpassing Ethereum‘s $16 million. In January, the figures were even more impressive, with Solana earning $124 million and Ethereum $109 million.
The performance of Solana-based DEXs supports the bullish case in the SOL-ETH ratio. The ratio peaked near 0.09 in January but has since pulled back to 0.075, according to data from TradingView. Despite this pullback, the overall trend remains positive.
While Solana’s dominance is undeniable, there are still challenges ahead. Tagus Capital noted that Solana’s total value locked (TVL) at $9 billion remains much lower than Ethereum’s $57 billion. This disparity may impact Solana’s long-term growth and stability.
