- For the first time in cryptocurrency history, Solana has eclipsed Ethereum in terms of monthly decentralized exchange (DEX) trade volume.
-2.77% Solana Solana sol According to DefiLlama, Solana DEX volume reached $55.8 billion in July, surpassing Ethereum’s on-chain trading activity between July 1 and July 31 (Ethereum eth -0.12%).
The biggest decentralized finance network, Ethereum, recorded $53.8 billion throughout that time. After Solana and Ethereum, Layer-2 networks including Arbitrum, Base, and L1 blockchain Binance Smart Chain made up the largest volume.
Why is Solana talking so loudly?
The historic moment when Solana overtook Ethereum happened in two separate ways for the two networks.
On Solana’s chain, memecoins were more well-known last year as a result of the success of projects like Bonk Bonk bonk -0.36% Bonk and Dogwifhat dogwifhat wif -8.21% dogwifhat in on-chain markets. Speculative investors made billions of dollars overnight by speculating on these tokens, which as of August 1 had market capitalizations in the billions of dollars.
Celebrities have also joined Solana, utilizing resources like Moonshot and Pump.fun to swiftly introduce new coins to the market. Public personalities’ presence gave the memecoin trend more traction even though the majority of these coins failed.
Investment managers such as VanEck submitted applications to the U.S. Securities and Exchange Commission to list shares of the spot Solana ETF. Robert Mitchnick, head of BlackRock’s digital assets division, noted that it appeared improbable that there would be a list of basket crypto ETFs that went beyond Bitcoin Bitcoin btc 0.7% Bitcoin and Ethereum.
Ethereum’s institutional promise and defi function
On the other hand, Ethereum continues to be the preferred application layer for creating decentralized apps. The biggest dapps were initially native to Ethereum, like Uniswap and Aave.
After a technological advancement that drastically lowered fees and restored the affordability of trading and swapping on Ethereum, interest in the platform has grown once more. Wall Street’s institutional interest for ETH rapidly followed the release of the upgrade, known as Dencun. The SEC granted permission to issuers such as BlackRock, Bitwise, Fidelity, and Grayscale to list spot ETH exchange-traded fundshares.
For the past six days or so, Spot Ethereum ETFs have been trading, and the recent offering has been significantly impacted by Grayscale outflows. In the first four trading days out of five, $750 million in products were exited, according to Nansen.
The impact of the ETFs on Ether’s future price is a topic of much debate. On-chain staking yields may rise due to supply dormancy brought on by ETF purchases, according to one viewpoint, but there are many who disagree that this development is beneficial to the business.
Still, on-chain evidence confirms Ethereum’s dominance in the DeFi industry. According to Glassnode, there has been a 127% growth in daily active addresses on Ethereum and its L2s since the beginning of the year.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
