In the previous week, Solana-based decentralized exchanges were busier than Ethereum ones. The meme coin craze may have boosted Solana volumes. One study group says Solana is more capital efficient than Ethereum and other systems. The most traded smart-contract blockchain is Solana, replacing Ethereum.
DeFiLlama data shows Solana-based DEX trading volume rose 67% to $21.3 billion in seven days. Ethereum-based decentralized exchange volume grew 3% to $19.4 billion. Solana has 17 DEXes. Orca, the largest, accounts for 88% of volume. Uniswap leads 46 Ethereum DEXes. Speculation in Solana-based meme coins dogwifwhat, bonk, book of meme, and slerf may have caused the flippening.
Solana tokens topped the DEX Screener's 24-hour trending list at press time. On March 13, 2,300 meme coins were created in an hour and Solana stablecoins reached a multiyear high of $2.80 billion due to speculation.
Solana's volume increased in fourth-quarter 2023 due to points programs and airdrops like the Solana DEX Jupiter, according to Reflexivity Research.
Solana has superior capital efficiency than Ethereum and other smart-contract blockchains. So, the blockchain can handle bigger trading volumes with lesser dollar value assets locked in its DeFi ecosystem.
The DEX volume-to-total value locked (TVL) ratio recently showed Solana outperforming Ethereum. In a recent Solana Foundation-commissioned analysis, Reflexivity Research found that Solana's capital efficiency has lately begun to exceed Ethereum, indicating a higher operational efficiency in its ecosystem.
This year, Solana's SOL token rose 68% to $170, ether rose 40% to $3,214, and the CoinDesk 20 Index, a crypto market index, rose 33%.According to TradingView, the SOL/ETH ratio reached a record high of 0.059 on Monday and was near 0.053 at press time.
Ethereum's DeFi ecosystem value makes it the largest smart-contract blockchain. Ethereum's TVL was $46.44 billion versus $3.6 billion in Solana at press time.
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