According to CoinDesk, Solana-based decentralized exchanges (DEX) have experienced higher trading volumes than their Ethereum counterparts over the past seven days. The trading volume in Solana-based DEXs increased 67% to $21.3 billion, while Ethereum-based DEXs saw a 3% rise to $19.4 billion. This shift has led to Solana replacing Ethereum as the No. 1 smart-contract blockchain by trading volume.
The increase in Solana's volume is attributed to the meme coin frenzy and the blockchain's higher capital efficiency compared to Ethereum and other chains. Solana's DEX volume-to-total value locked (TVL) ratio, a measure of capital efficiency, has recently outpaced Ethereum, suggesting a higher level of operational efficiency within its ecosystem. Reflexivity Research's recent report commissioned by the Solana Foundation supports this claim.
Solana's SOL token has jumped 68% to $170 this year, while ether has rallied 40% to $3,214 and the CoinDesk 20 Index, a measure of the broader crypto market, added 33%. Despite Solana's recent surge, Ethereum remains the world's biggest smart-contract blockchain in terms of the total value locked in the DeFi ecosystem, with $46.44 billion versus $3.6 billion in Solana.
