Solana Leaves Ethereum in the Dust: DEX Trading Volume Crowned New King

• Solana beats Ethereum in daily DEX trading with $1.262 billion, a major win for Solana in the DeFi world.
• Solana’s success attributed to rising total value locked, thriving decentralized exchanges, and a surge in stablecoin metrics.

Solana has once again outperformed Ethereum in 24-hour DEX trading volume, with $1.262 billion compared to Ethereum’s $1.167 billion. This development underscores Solana’s growing influence and market presence. 

solana flipped ethereum in 24hour dex volume again… pic.twitter.com/ngPN7pzhru

— Ansem (@blknoiz06) December 20, 2023

Solana’s increasing significance in the DeFi ecosystem is shown by its recent ascent to the top of the DEX trading volume charts. Although there has been intense rivalry among several blockchains in the DEX trading arena, it is impossible to ignore Solana’s rise to prominence. This accomplishment results from several circumstances pushing Solana to the forefront; it is not a single incident.

Rising Total Value Locked (TVL) Fuels Solana’s Surge

Solana’s total value locked (TVL) has increased significantly and is now above $1 billion for the first time since the fall of FTX in November of last year, which is one of the main reasons for the company’s recent success. Rising asset values and a steady flow of capital into DeFi technologies inside the Solana ecosystem have fueled this comeback.

One of the main reasons for Solana’s success in DEX trading volume is the exceptional performance of decentralized exchanges like Orca that run on its network. The trading volume on these platforms has increased significantly, indicating traders’ rising confidence and interest in the Solana ecosystem.

With a market value of $35.42 billion, Solana has cemented its place in the cryptocurrency market, outpacing XRP, which is marginally behind at $33.74 billion. This market capitalization milestone strengthens Solana’s position as a significant participant in the blockchain industry.

Stablecoin Metrics on Solana Soar

Apart from its remarkable performance in DEX trade volume, Solana has also experienced a noteworthy rise in stablecoin measures. Stablecoin growth on the Solana network and market cap have experienced notable gains, especially in December. The volume of stablecoin inflows has continuously increased, exceeding levels observed in earlier months. The stablecoin market capitalization on Solana has topped $1.7 billion as of the most recent data, a figure not seen since March.

Since mid-October, Solana has continuously been among the top three networks with the biggest volume of stablecoin transfers. According to recent data, Solana has surpassed all other stablecoin transfer volumes, with an astounding $36.12 billion transferred in the last seven days. Solana has experienced the fastest growth rate over the last 198 days, with a $66.5 billion total transfer volume.

SOL’s Remarkable Performance in 2023

Solana’s performance in 2023 has been nothing short of extraordinary, outshining its Layer One (L1) rivals in the crypto market.  By December 20, 2023, Solana had already gained almost 650% on the year, making many notice her as a possible rival to Ethereum for market share in the L1 blockchain. Sam Bankman-Fried’s FTX cryptocurrency exchange filed for bankruptcy in November 2022, which caused SOL prices to plummet significantly. This turnaround is astounding.

Solana’s rise in popularity in 2023 is due to its inexpensive gas fees and quick transaction processing. Solana, the most advanced Layer One blockchain, has the closest chance of competing with Ethereum since it substitutes Ethereum’s expensive gas charge market. Solana’s average gas rate is just 0.000005 SOL ($0.0000013) at the time of writing, which makes it very appealing to DeFi customers looking for affordable options. Ethereum’s average gas fees have frequently surpassed $50.

It is worth noting that Solana is currently trading at around $$86.33, with a 24-hour increase of 12%.