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Solana Outpaces Ethereum in Daily Volume
- For the first time ever, Solana’s daily DEX volume outshone Ethereum, although the reign was short-lived.
- The newfound popularity of meme coin BONK, alongside USDC integration, has fuelled interest in Solana’s DeFi ecosystem.
- Solana boasts cheaper transactions and faster settlement times compared to the congestion of Ethereum.
Since its inception in 2020, Solana has been striving to overcome Ethereum to become the unofficial “King of DeFi”. Although, in the long-term, that title no doubt still belongs to the Ether ecosystem, for just a moment, Solana managed to wear the crown.
Solana “Flips” Eth For Very First Time
Two days ago, trading volume on Solana decentralised exchanges (DEX) managed to beat out Ethereum over a 24-hour period. Data acquired from DeFiLlama showed that Solana’s daily volume surpassed USD $1.5 billion (AUD $2.24 billion), while Ethereum trailed behind at approximately USD $1.15 billion (AUD $1.72 billion).
The “flippening” didn’t last long, with order restored the day after as Ethereum once again reclaimed the throne for daily trading volume. However, the monumental occasion was not lost on Solana’s community and comes amid significant ecosystem growth in the second half of 2023.
BONK and USDC Leading the Charge
The newfound interest in Solana’s decentralised finance ecosystem is being pushed by two elements: BONK and USDC.
BONK is a meme coin in the ilk of Dogecoin and Shiba Inu that has recently gained traction, quickly rising to the position of third-biggest meme token by market cap. This has sparked significant community interest, especially amid news that those who purchase a Solana phone were airdropped an amount of BONK worth more than the actual phone at retail. This is no longer the case thanks to a massive increase in demand.
Meanwhile, Solana’s integration of the second-most popular stablecoin USDC has seen seasoned DeFi traders flock to the blockchain thanks to its cheap transaction fees and fast settlement times.
Solana Versus Ethereum: Who Will Win?
When Ethereum introduced smart contracts in 2017, it revolutionised the blockchain industry. Hundreds of influential decentralised applications brought new utility to the world and helped bring solutions to real-world problems crypto had long wanted to implement. However, as the Ether DeFi world exploded, issues of its own started to arise – gas fees soared, network congestion thickened and settlement times lengthened.
These are the keys to Solana’s case for overcoming Ethereum. Transaction fees on Solana are substantially cheaper than Ethereum, and it can handle congestion much better. But does it have the security and app developers on board to finish the job? Only time will tell.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
