The rivalry between Solana and Ethereum just took a new twist with SOL outshining ETH in key metrics.
By Godfrey Benjamin
Edited by Julia Sakovich
Updated
3 mins read
The Solana network is proving that speed and low fees matter in the decentralized ecosystem. According to DeFiLlama data, Solana-based decentralized exchanges (DEXs) have beaten Ethereum ETH $1 642 24h volatility: 1.4% Market cap: $198.11 B Vol. 24h: $13.10 B in trading volume for the fourth month in a row
This shows that traders are willing to migrate to chains that offer better efficiency. Even as the broader crypto market struggles to regain momentum, Solana’s growth in decentralized finance (DeFi) continues.
So far this month, Solana-based DEXs have processed over $60 million in trading volume. Per DeFiLlama data, this is nearly double Ethereum’s $34 million. This achievement continues a trend that started in October, with Solana consistently taking the lead.
January came as a standout month for Solana as its DEXs hit a massive $258 billion in total volume, while Ethereum lagged behind at just $86 billion.
This is because Solana’s low transaction costs and high-speed service are attracting both traders and developers. Last month, Coinspeaker reported that Solana blockchain now ranks as the third largest network, surpassing BNB Chain
Since Ethereum’s fees are often too high for small trades, many traders now prefer Solana for buying and selling meme coins and making quick trades.
Amid its reputation as the cheaper alternative to Ethereum, Solana SOL $131.6 24h volatility: 0.2% Market cap: $67.92 B Vol. 24h: $4.34 B is not just facilitating transactions, it is making money.
So far this month, Solana has made $25 million in revenue, while Ethereum has raked in $16 million. In January, Solana earned even more, reaching $124 million compared to Ethereum’s $109 million.
This increase in revenue shows that Solana is not just a cheaper option. It is also a strong and profitable network on its own.
Solana’s strong performance is visible in the SOL-ETH ratio, a key metric that compares the value of SOL relative to ETH. In January, the ratio reached around 0.09 before pulling back to 0.075. This shows that investors see Solana as an important player, though Ethereum still has more money in its system.
Despite its congestion, Solana has made big gains in trading. However, Ethereum still holds more value in total assets. On-chain data revealed that it has $57 billion in DeFi assets, much more than Solana’s $9 billion.
In the crypto market, Solana is showing signs it might rally soon. The price, which is currently above the $200 level suggests a bigger rebound lies ahead. As reported by Coinspeaker, investors are waiting to see if Solana can reach over $250 soon.
On the other hand, Ethereum is trading below its key support level, dropping to its record lows, currently sitting at $2.159. To make things complicated, Coinspeaker recently highlighted that a large number of ETH were moved off major exchanges during the week.
However, on the bright side, this move shows that long-term investors are confident and prefer holding onto the cryptocurrency instead of selling it.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
