Solana surpasses Ethereum in decentralized exchange (DEX) trading volume.

Solana blockchain outpaces Ethereum in decentralized exchange (DEX) trading volumes, with the recent meme coin frenzy further boosting activity on Solana-based platforms. According to data from DeFiLlama, trading volume on Solana DEXes surged by 67% to reach $21.3 billion in the past week, while Ethereum-based DEXes saw a more modest 3% increase to $19.4 billion. This shift marks a notable milestone, with Solana overtaking Ethereum as the leading smart-contract blockchain by trading volume.

The surge in Solana’s trading volume can be attributed to the speculative excitement surrounding meme coins like dogwifwhat, bonk, book of meme, and slerf, which have gained significant traction on the platform. Additionally, the proliferation of points programs and airdrops, such as the Solana DEX Jupiter, have contributed to the increased activity on Solana-based DEXes.

Reflexivity Research highlights Solana’s superior capital efficiency compared to Ethereum and other smart-contract blockchains. Solana’s ecosystem can support higher trading volumes with a lower dollar value of assets locked in its DeFi protocols, indicating a higher level of operational efficiency. The DEX volume-to-total value locked (TVL) ratio further underscores Solana’s performance, signaling a significant outpacing of Ethereum in terms of operational efficiency within its ecosystem.

Despite Solana’s impressive growth, Ethereum remains the dominant force in the DeFi space, boasting a total value locked of $46.44 billion compared to Solana’s $3.6 billion. However, Solana’s SOL token has seen remarkable gains, surging 68% to $170 this year, outpacing Ethereum’s ether, which rallied 40% to $3,214. The SOL/ETH ratio reached a record high of 0.059 on Monday, underscoring Solana’s strength relative to Ethereum in the current market dynamics.