Will Solana Reclaim Its "Ethereum Killer" Title?

 

Solana’s native token surged by 19.5% between March 5 – 7, reaching $150 for the first time since January 2022.

 

Solana’s native token surged by 19.5% between March 5 – 7, reaching $150 for the first time since January 2022.

Think Beyond Bitcoin – ETH & SOL Rally on Surge

Have you heard of Solana’s initial nickname: “Ethereum Killer”?

While it initially emerged as just a joke, it is coming closer to reality, especially on the DEX (decentralised exchange) volume surge.

On the weekly chart, Solana commanded 28.5% of total DEX volumes, whereas Ethereum dominated at 36.1%.

Almost there…

Moreover, SOL’s decentralised exchange has experienced remarkable expansion as more project established themselves on the network.

Just a year ago, the network barely accounted for 1.1% of the DEX market share, while Ethereum dominated over 50% as highlighted by research strategist Tom Wan.

Solana-based DEXs such as Jupiter (JUP) have witnessed incredible success ever since their introduction, attracting massive traffic. Other top DEXs including Orca, Raydium, and Phoenix, have each facilitated trading volume exceeding $1.5 billion over the last seven days, according to data from DefiLlama.

• In the past week alone, the coin has recorded approximately $15 billion in DEX volume.
• The leading decentralised exchanges have experienced triple-digit surges in their weekly volumes.

Over the same period, Ethereum’s DEX volume reached $20.7 billion, translating to around +55% weekly change. However, as per DefiLlama data, the weekly change for Ethereum’s major DEXs remained in the double digits.

This means that Solana’s weekly DEX volume experienced a remarkable threefold increase compared to ETH’s performance.

Does Solana’s DEX Growth Impact the Market?

On one hand, Solana’s traction significantly increased in the DEX space, and seems to have eaten part of ETH’s market share.

Developed as a solution to Ethereum’s scalability and speed limitations, Solana’s lower fees and faster transactions have seemed to attract more users, investors, and projects.

On the other hand, this surge in transaction volume has also led to occasional challenges.

In the meantime, ETH is actively pursuing major upgrades to tackle scalability, speed, and cost issues.

Learn more about the Dencun Upgrade.

Now, the outcome of these upgrades will determine whether the second largest cryptocurrency can regain its competitive edge in DEX volume against SOL.