Key Points
- Solana’s DEX volume has risen to 28.5%, getting closer to Ethereum’s 36.1%.
- Notable Solana-based DEXs like Jupiter, Orca, Raydium, and Phoenix have contributed to this surge.
Solana, often referred to as the “Ethereum Killer”, is making notable strides in the decentralized exchange (DEX) arena. The weekly chart reveals that Solana now accounts for 28.5% of the total DEX volumes, with Ethereum still leading at 36.1%. BNB Chain and Arbitrum trail behind at approximately 12%.
Growth in DEX Volume
Over the past year, Solana has seen a significant increase in DEX volumes as more projects are established on the network. This time last year, Solana’s market share was a mere 1.1% compared to Ethereum’s dominance of over 50%. The data was shared by Tom Wan, an on-chain data and research strategist at 21Co.
Solana-based DEXs such as Jupiter have seen massive traffic since their launch. Other prominent DEXs on Solana include Orca, Raydium, and Phoenix, each recording over $1.5 billion in trading volumes over the past week. In total, Solana witnessed $15 billion in DEX volume over the past seven days, a weekly change of +153%.
Meanwhile, Ethereum’s DEX volume reached $20.7 billion, a weekly change of approximately +55%. Top Ethereum DEXs like Uniswap and Curve Finance have also posted impressive results. However, Solana’s weekly DEX volume surged three times compared to Ethereum’s.
Impact on the Market
Solana’s growing presence in the DEX space appears to have taken a portion of Ethereum’s market share. The network was designed to address Ethereum’s scalability and speed problems. Solana’s lower fees and faster transactions have attracted more users and projects, making it attractive to investors.
However, the increase in Solana’s volume has its implications. For example, the Binance Exchange temporarily suspended withdrawals on Solana on March 6 due to a spike in transaction volumes. Meanwhile, Ethereum is preparing for significant upgrades to address its scalability, speed, and cost issues. It remains uncertain whether these upgrades will help it maintain its lead in DEX volume over Solana.
