Solana is the first cryptocurrency to surpass Ethereum in monthly trading volume of decentralized exchanges (DEX).
Solana (SOLDEX volumes reached $55.8 Billion in July. They outpaced on-chain trades on Ethereum.ETHDefiLlama states that a DefiLlama subscription is valid between the 1st of July and the 31st.
Ethereum, the leading chain of decentralized finance, accounted for $53.8 billion during this period. After Solana, Layer-2 networks such as Arbitrum and Base along with L1 Blockchain Binance Smart Chain accounted for the largest volume.
What is driving Solana’s volume?
Solana’s momentous victory over Ethereum took place under conditions that were different for each network.
Dogwifhat, a project that uses memecoins to promote awareness of dogwifhat in particular, has gained a lot of popularity among Solana’s customers.WIFBonkBONK() is a storming the market. Speculative investors made overnight millions by investing in tokens that traded at billion-dollar prices as of 1 August.
Solana has also attracted celebrities who have used tools such as Moonshot and Pump.fun to bring tokens quickly to the market. The presence of celebrities in the market has given the memecoin meta a boost, even though most failed.
VanEck is a wealth manager. applied The U.S. Securities and Exchange Commission will list shares of the Solana ETF. Robert Mitchnick said that BlackRock’s director of digital assets would be releasing a basket of crypto ETFs (including Bitcoin) in the future.BTCEthereum and Bitcoin seemed to be unlikely.
Ethereum’s institutional role and defi role
Ethereum, on the other hand, remains the application layer of choice for decentralized applications. The biggest dapps such as Aave, Uniswap and others were initially native to Ethereum.
After a recent technological breakthrough, Ethereum has gained resurgence in interest. upgrade The fees for trading and swapping Ethereum have been significantly reduced. It is a significant reduction in fees that makes trading on Ethereum and swapping affordable once again. upgradeDencun was followed quickly by the institutional demand for ETH in Wall Street. The SEC has authorized BlackRock Bitwise Fidelity and Grayscale to list exchange-traded funds that hold spot ETH.
Grayscale’s outflows are weighing on this new product. Spot Ethereum has been trading for six days. Nansen says that $750 million left products within the first 4 out of 5 trading days.
Many debates rage about how the ETFs affect Ether’s price in the future. One perspective suggests Supply dormancy due to ETF purchasing will drive on-chain staking returns, but some people argue against this development. regarded The industry benefits from the new technology.
In any case, the on-chain statistics confirm Ethereum’s leadership in DeFi. Glassnode has reported that Ethereum’s L2s and daily active addresses have increased 127% in the past year.
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Source: crypto.news