Solana Flipped Ethereum Again, This Time in Record Frequency

Solana surpasses Ethereum in daily DEX trading volume, signaling a potential shift in the crypto landscape.

Hands holding Solana and ETH coins looking at the chart.
Created by Kornelija Poderskytė from DailyCoin
  • Solana surpassed Ethereum’s DEX volume again. 
  • Ethereum flipping is happening more frequently.  
  • Solana’s ecosystem growth is driving demand. 

Solana has been on the upswing in recent months, thanks to the memecoin mania. This is showing up in the figures, as trading volumes have shown significant spikes, even overtaking Ethereum several times. What is more, Solana volume flips have been happening more and more frequently.  

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Most recently, Solana overtook Ethereum just ten days after the last flip. This has prompted speculation about whether Solana volumes can overtake Ethereum for good. 

Solana Flips Ethereum in Volume  

Thanks to the large increase in memecoin traffic, Solana has seen a consistent increase in key on-chain metrics. On Monday, July 1, Solana has once again overtaken Ethereum in daily DEX trading volume, at  $848.71 million compared to Ethereum’s $778.66 million. 

Weekly DEX volume across chains.
Source: DefiLlama

This was not the first time Solana surpassed Ethereum in DEX volume. In fact, it has happened multiple times this year However, the significance of the latest event was that the frequency of the flips is increasing. The latest flip happened just ten days after the last one on June 18. The flip before that happened also ten days before, on June 8.

Before that, events like these start to become less frequent. For instance, one before that happened on April 21. Even earlier, there was a flip on March 19, more than one month before. As flips are becoming more frequent, Solana may take over the first place in DEX volume for good. 

Can Solana Overtake Ethereum? 

Solana is in a good position to overtake Ethereum in both DEX and total volumes. For one, Solana’s low fees make it capital-efficient, meaning that trades with lower profitability are economical. This naturally contributes to higher trading volumes, even at a lower total value locked (TVL). 

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These low fees also contribute to significant bot traffic and high-frequency trading on Solana, which in turn contribute to higher DEX volume. This explains why Solana can compete with DEX volume, even when its TVL is just a fraction of Ethereum’s, at $4.5 billion compared to Ethereum’s $59 billion

These factors also mean even if Solana surpasses Ethereum in volume, it has a long way to go before it can threaten its TVL and market cap. 

On the Flipside

  • Despite a strong growth in memecoin trading, a large number of tokens on Solana are abandoned soon after launch. 
  • Ethereum‘s ecosystem remains by far the largest, with a vast array of decentralized applications (dApps) and projects. 

Why This Matters

DEX traffic is a key metric that reflects the popularity of a chain. As Solana’s traffic increases, its position in the market will also improve. 

Read more about Solana’s memecoin surge: 
How Solana Became the Home of Memecoin Token Launches

Read more about institutional flows to Ethereum:  
Why Global Investors Ethereum ETPs Saw Largest Outflows Since 2022

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.