Solana Surges in DEX Trading Volume, Challenging Ethereum’s Dominance

As of January 21, Solana’s DEX trading volume reached $120.6 billion, representing a 323.3% increase over the last seven days. This significant surge has analysts wondering if Solana can compete with Ethereum and position itself as the top Layer 1 blockchain in 2025.

Comparing Solana and Ethereum’s DEX Trading Volume

According to recent data, Ethereum’s weekly DEX trading volume rose to $24.7 billion, a 47.58% increase. Uniswap accounted for over 73.7% of this trading volume, contributing $17.46 billion to Ethereum’s DEX activity. In contrast, Solana’s top DEX, Raydium (RAY), saw a 236% weekly change, handling $52 billion in trading volume for Solana.

Solana’s growing ecosystem and unique “proof of history” protocol are driving its success. The blockchain’s PoH enables a high throughput of 65,000 transactions per second without second layers, making it faster and more efficient than Ethereum’s proof of stake protocol.

Factors Contributing to Solana’s Growth

Several factors are contributing to Solana’s increasing popularity:

  • Scalability and security: Solana’s new update, Firedancer, aims to bootstrap development on the Layer 1 by boosting scalability and improving the network’s overall vulnerability to bugs and attacks.
  • Stablecoin infrastructure: Solana’s stablecoin market cap has risen by 67.48% to $9.8 billion as of January 21, 2025, making it a rising competitor to Ethereum.
  • Volume-to-market cap ratio: Solana’s 13.13% volume-to-market cap ratio indicates a surge of trading activity, exceeding Ethereum’s 10% ratio.

Solana’s growing ecosystem of assets, applications, businesses, and users is becoming a compounding superstructure, positioning Solana to be a secular winner of the cryptoeconomy.

Analysts’ Predictions

Analysts believe that Solana’s unique protocol and growing ecosystem make it a strong competitor to Ethereum. Bitwise Europe analysts even predict that SOL’s price could increase by 3,000% by 2030, making it more susceptible to overtaking Ethereum in 2025.

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