Solana Surpasses Ethereum Again, Indicating a Shift in Crypto

Solana [$SOL ] has been gaining traction recently, largely due to the memecoin craze, leading to significant increases in trading volumes. Notably, Solana's daily DEX trading volume has overtaken Ethereum's multiple times. On July 1, Solana reached $848.71 million in daily DEX trading volume, compared to Ethereum's $778.66 million.

This recent flip marks the latest in a series of frequent overtakes, with the most recent occurring just 10 days apart. These frequent flips, such as those on June 18 and June 8, suggest a growing trend where Solana [$SOL ] may consistently surpass Ethereum [$ETH ] in DEX volume.

Several factors contribute to Solana's success, including its low fees, which promote high-frequency trading and substantial bot activity. These elements help Solana achieve high trading volumes despite a lower total value locked (TVL) of $4.5 billion compared to Ethereum's $59 billion.

However, Solana faces challenges, such as a high number of abandoned tokens, while Ethereum maintains a vast ecosystem of decentralized applications (dApps). Despite these hurdles, increasing DEX traffic on Solana signals its rising market position.