Solana is on track to maintain its dominance in decentralized exchange (DEX) trading volume for the fifth consecutive month. According to DeFiLlama, Solana-based DEXs have recorded over $60 million in trading volume this month, nearly double Ethereum’s $34 million.
Since October, Solana has consistently outperformed Ethereum and other smart-contract blockchains in DEX activity, fueled by lower fees, faster transactions, and a surge in memecoin trading.
Memecoin Frenzy and High Throughput Drive Growth
A significant factor behind Solana’s rising DEX volume is its ability to handle high-frequency trading at minimal costs. Unlike Ethereum, which often faces congestion and high gas fees, Solana offers a seamless experience for traders, attracting more users to its DeFi ecosystem.
In January alone, Solana-based DEXs saw a staggering $258 billion in total trading volume, compared to Ethereum’s $86 billion. This shift highlights a growing preference for Solana among retail and institutional traders alike.
Revenue Soars Despite Low-Cost Transactions
Despite being known as a low-fee blockchain, Solana is generating impressive revenue. So far this month, Solana has earned $25 million in transaction fees, surpassing Ethereum’s $16 million. January’s figures were even more striking, with Solana bringing in $124 million compared to Ethereum’s $109 million.
This revenue growth strengthens the bullish outlook for Solana, particularly in the SOL-ETH ratio, which peaked at 0.09 in January before settling around 0.075.
Ethereum Still Leads in TVL
While Solana is surging in trading volume and revenue, Ethereum remains the dominant force in total value locked (TVL). Ethereum currently holds $57 billion in TVL, significantly higher than Solana’s $9 billion.
This gap suggests that while Solana is excelling in transaction efficiency and cost-effectiveness, Ethereum retains its position as the preferred platform for large-scale DeFi investments.
Solana’s sustained DEX dominance underscores its growing influence in the crypto space. With lower fees, faster transactions, and increasing revenue, Solana is emerging as a serious contender against Ethereum in the DeFi sector. However, Ethereum’s stronghold on TVL indicates that both networks will likely coexist, catering to different segments of the blockchain economy.
