- Solana’s daily swap transactions hit 9.25 million, dwarfing Ethereum’s 135,000.
- Solana-based DEXes record trades worth $10.74 billion, outperforming Ethereum.
- Solana’s total value locked (TVL) more than doubles to $2.19 billion in a month.
In a year-end twist, Solana (SOL) has emerged as the powerhouse of decentralized finance (DeFi), overshadowing Ethereum (ETH) in several key aspects.
Surge in Solana’s Swap Transactions
Recent data from Flipside’s statistics reveals an astonishing surge in Solana’s daily swap transactions, reaching a staggering 9.25 million on Christmas day. In stark contrast, Ethereum, the frontrunner in the smart contracts space, managed a mere 135,000 transactions. The surge in Solana’s swap activity underscores the growing confidence and demand for its DeFi protocols, particularly decentralized exchanges (DEXes).
Solana’s DEX Dominance
Solana’s decentralized exchanges have been on a remarkable growth trajectory, recording trades worth $10.74 billion in the last week alone. This surpasses Ethereum’s performance, which executed trades totaling $9.42 billion. December marked a watershed moment for Solana’s DEX activity, with over $24 billion settled, indicating a threefold increase from the previous month.
Adding to Solana’s triumph, the network witnessed a substantial uptick in the USD value of cryptocurrencies locked in its DeFi projects. The total value locked (TVL) on Solana more than doubled over the last month, reaching an impressive $2.19 billion at the time of reporting. Notably, Solana boasts the fastest monthly growth rate among the top ten blockchain networks.
SOL’s Price Rally and Market Dynamics
Solana’s success is not only attributed to its thriving DeFi ecosystem but also to the impressive rally of its native token, SOL. Over the last month, SOL experienced an 87% surge, marking an almost 11x increase from the beginning of the year. However, in the last 24 hours, SOL retraced as traders seized the opportunity to lock in profits. This retracement led to a temporary decline in SOL’s market cap, causing it to slip to the fifth position according to CoinMarketCap.
Despite the short-term retracement, the overall trajectory for Solana remains overwhelmingly positive. The blockchain’s dominance in DeFi activities, coupled with the meteoric rise of SOL, positions Solana as a formidable player in the cryptocurrency landscape, challenging the supremacy of long-standing giants like Ethereum.
Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.