The decentralised exchange (DEX) volume on Solana has surged to a record high, surpassing Ethereum, the largest blockchain by Total Value Locked (TVL).
This significant achievement comes as both blockchains’ native tokens, $ETH and $SOL, experienced notable price increases over the past week.
According to @SolaniansHub on X, Solana’s DEX volume led all major blockchains over the last seven days, highlighting its growing influence in the decentralised finance (DeFi) sector.
The surge in volume is particularly noteworthy during the ongoing market recovery, as Solana has managed to capture a majority of DEX activity. This shift indicates a growing preference among users for Solana-based platforms.
One significant contributor to this volume spike is Jupiter, a Solana-based DEX aggregator. It recently lowered fees on perpetual products in response to community feedback, reducing the base fees from 0.07% to 0.06%.
This strategic move likely attracted more users to its platform, boosting overall DEX volume.
Additionally, CoinMarketCap data reveals that $ETH gained nearly 10.5% over the past seven days, currently trading at $3,424, while $SOL rose 12.6% to $158.96.
$ETH’s market cap stands at $411 billion, whereas $SOL’s is $73 billion. The recent market recovery has benefitted both digital assets, signalling renewed investor confidence.
The potential approval of Solana and Ethereum exchange-traded funds (ETFs) could further boost their prices. Spot $ETH ETFs are expected to be approved on 23 July, while $SOL ETFs are predicted for 2025.
Approval by the Securities and Exchange Commission (SEC) could potentially trigger a broader altcoin rally, providing additional momentum to these digital assets.
Developer activity boosts Solana ecosystem
The Solana ecosystem has been attracting significant developer interest, contributing to its recent rise.
Cryptocurrency analysis company Santiment recently highlighted the altcoins that developers are most focused on within the Solana ecosystem.
Analysts examined developer activities over the last 30 days to create the list, providing insights into the most active projects and tokens.
As expected, $SOL ranked first with a developer score of 74.57. It underscored the ongoing commitment of developers to enhance and expand the capabilities of Solana’s primary token.
The Solana ecosystem has gained popularity with new tokens and token hunters, particularly due to its low minting and transaction fees. These cost advantages make it an attractive platform for launching new projects and experimenting with innovative concepts.
Recently, many new memecoins have emerged within the Solana ecosystem, adding to its diversity and appeal. Examples such as $BOME have even been listed on Binance early on, demonstrating the rapid growth and adoption of new tokens within the network.
Staking sector vital to SOL’s growth
Solana’s staking sector continues to be one of the most vibrant parts of the network, playing a crucial role in its overall ecosystem.
Staking, which involves locking up capital for network security in return for yield, is an essential component of DeFi and a robust sector of the on-chain economy. Staking requirements vary by chain, reflecting the unique approaches taken by different networks to incentivize and secure their platforms.
On Ethereum, staking requires 32 $ETH for native staking on a personal node. Alternatively, users can opt for liquid staking providers like Lido or Rocket Pool, which offer more flexibility and lower barriers to entry.
In contrast, Solana offers a more accessible staking model through its delegated Proof-of-Stake system. This system allows users to delegate their tokens to validators instead of running their own nodes, simplifying the staking process and broadening participation.
This ease of staking may explain the significant difference between Solana and Ethereum in terms of total staked versus liquid staked assets.
Solana has $61 billion in staked capital, surpassing Ethereum, but lags in liquid staking.
On Ethereum, 65% of staked $ETH is in liquid form, whereas only 6.5% of Solana’s staked $SOL is in liquid staking tokens (LSTs).
