In This Post:
- – Solana’s DEX trading volume surpasses Ethereum’s.
- – Faster and cheaper transactions on Solana.
- – Strong developer and community support for Solana.
In July, Solana‘s decentralised exchange (DEX) trading volume reached $55.876 billion. This is the first time Solana has beaten Ethereum. Ethereum had $53.868 billion in trading volume. This is big because Ethereum always led in this area. Other blockchains also had high trading volumes. Arbitrum had $24.569 billion. Binance Smart Chain (BSC) had $17.888 billion. Base had $15.554 billion.
Why Solana is Winning the DEX Race
Solana is winning because it is faster and cheaper than Ethereum. Solana can handle thousands of transactions per second. Ethereum can only handle about 15 transactions per second. This speed is very important for traders. Solana’s transaction fees stay low even when demand is high. Ethereum’s fees can get very high, making it less attractive.
Solana uses a system called Proof of History and Proof of Stake. This lets Solana process many transactions quickly. It remains secure and decentralised. Ethereum has trouble handling many transactions at once. Its creator, Vitalik Buterin, is trying to fix this.
Developers like Solana because it is cheaper and faster to build on. This has led to many new projects and apps on Solana.
Solana’s Market Success in 2023
Recently, Solana has done better than Ethereum in several areas. One big area is meme coins. Solana-based meme coins have given much higher returns than those on Ethereum. This has brought a lot of money to Solana. Celebrity endorsements and strong community support have also helped.
For example, Solana-based meme coins had an average return of 8,469% in the first quarter of this year. Ethereum’s meme coins had around 962% returns. Solana also has many active daily users. Over 1.6 million people use Solana daily. This is more than any other blockchain, including Ethereum.
Solana is a fast and cheap blockchain. Solana supports smart contracts and decentralised apps (dApps). There are many projects on Solana. These include DeFi platforms and NFT marketplaces. Unlike Ethereum, Solana does not need a separate layer to handle more transactions. Layer 2 solutions on Solana help connect it to other blockchains.
The Future of Solana
Solana’s unique system and strong market performance make it a strong competitor to Ethereum. Solana’s fast transactions and low fees attract many developers. The Solana ecosystem includes various projects:
- DEXs like Radium: Let users swap tokens and earn fees.
- DePIN projects like Helium:Reward users for providing resources.
- Liquid Staking protocols like Jito:Let users earn rewards by depositing assets.
However, Solana faces some challenges. Recently, Solana’s price rose past a key level but is now pulling back. This pullback could be a healthy phase before a new rise. But if Solana falls below this level, the price may go back to its previous trend.
Indicators like the Parabolic Stop and Reverse (SAR) and the Chaikin Money Flow (CMF) suggest a bearish outlook for Solana. The SAR dots above the price show a downtrend. The CMF shows less money coming into Solana. Solana’s performance in July shows its potential to compete with Ethereum. With fast transactions, low fees, and strong developer support, Solana is in a good position for future growth. But traders should watch the market closely for any changes.
