Solana Officially Jumps Ethereum in DEX Volume

Joshua Ramos
Solana Forecasted To Surge 500%: SOL Mirrors ETH's 2020 Rise
Source: Mudrex

Following the meme coin craze that has catapulted the network this month, Solana has officially jumped Ethereum in DEX volume. Over the past week, Solana-based decentralized exchanges have been outpacing Ethereum on the heels of several meme coins facing increasing value.

Throughout March, tokens like Dogwifhat (WIF), Bonk (BONK), Book of Meme (BOME), and others have surged in value. Their presence on Solana has meant overall skyrocketing volumes amid the trading frenzy. Yet, one research firm has pointed out that the network’s capital efficiency is also far better than other blockchains, including Ethereum. Therefore, leading the flip in prevalence regarding DEX volume.

Solana (SOL) Forecasted To Hit $235: Here's When

Also Read: Solana-Based ANDY Memecoin is Poised For Explosive Growth: Here’s How To Get In

Solana Leaps Ethereum in DEX Volume Amid Meme Coin Madness

Throughout 2024, the digital asset market has been performing incredibly well. Although this week has seen prices correct, Bitcoin had reached $73,000 this month alone, with a host of other assets also bringing forth gains. Yet, the meme coin sector has benefitted tremendously well.

Moreover, that market has led to a shift in blockchain relevance over the past week. Specifically, Solana has officially surpassed Ethereum in DEX volume. According to DeFi Llama, Solana’s DEX volume has increased 67% to reach $21.3 billion over the last week alone.

Over that same period, Ethereum has only risen 3%, for $19.4 billion in volume. For Solana, its Orca DEX exchange currently accounts for 88% of the total volume amid 17 decentralized exchanges. Alternatively, Ethereum offers 46 DEXes, with Uniswap leading its pack.

Also Read: Solana (SOL) Market Cap Predicted to Reach $1 Trillion

This development has undoubtedly been driven by meme coins. As previously stated, Solana boasts many of the high-profile meme coin projects gaining traction this month. Even assets like SERF are on their way to entering the top 100 of all cryptocurrencies.

However, that may not be all that’s driving the flip. Reflexivity Research completed a report noting that Solana has far higher capital efficiency than Ethereum, or most competitors for that matter.

The report observed the DEX volume-to-total value locked (TVL) ratio. Moreover, it identified that “Solana has begun to significantly outpace Ethereum, suggesting a higher level of operational efficiency within its ecosystem.”