Ethereum

Solana

Solana has surpassed Ethereum for monthly decentralized exchange (DEX) trading volume for the first time in crypto history. 
Solana (<a href="https://crypto.news/price/solana/" target="_blank" rel="noreferrer noopener">SOL</a>) DEX volume hit $55.8 billion in July, outpacing on-chain trading activity on Ethereum (<a href="https://crypto.news/price/ethereum/">ETH</a>) between July 1 and July 31, per DefiLlama.&nbsp; 
Ethereum, the largest chain for decentralized finance, recorded $53.8 billion in the same period. Layer-2 networks like Arbitrum and Base and L1 blockchain Binance Smart Chain comprised the most volume after Solana and Ethereum.&nbsp; 
<figure class="wp-block-image size-full">
 <picture loading="lazy" decoding="async" class="wp-image-14288916"> 
 <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/08/Screenshot-569.png.webp"> 
 <img loading="lazy" decoding="async" width="1811" height="750" src="https://crypto.news/app/uploads/2024/08/Screenshot-569.png" alt="Solana outpaces Ethereum DEX volume"> 
 </picture> 
 <figcaption class="wp-element-caption">
 Monthly DEX volume on Aug. 1 | Source: <a href="https://defillama.com/dexs/chains" target="_blank" rel="">DefiLlama</a>
 </figcaption>
</figure> 
<h2 class="wp-block-heading" id="what-s-driving-solana-s-volume">What’s driving Solana’s volume?</h2> 
Solana’s landmark moment in surpassing Ethereum occurred under different circumstances for both networks. 
Memecoins gained popularity on Solana’s chain last year, with projects like Dogwifhat (<a href="https://crypto.news/price/dogwifhat/">WIF</a>) and Bonk (<a href="https://crypto.news/price/bonk/">BONK</a>) storming on-chain markets. Many speculative investors became overnight millionaires by betting on such tokens, which traded with billion-dollar market caps as of August 1. 
Celebrities have also entered Solana, quickly bringing new tokens to market using tools like Pump.fun and Moonshot. Although most of these coins failed, the presence of public figures added momentum to the memecoin meta. 
Wealth managers like VanEck <a href="https://crypto.news/solana-jumps-8-as-vaneck-files-first-sol-etf-bid/" target="_blank" rel="noreferrer noopener">applied</a> to list spot Solana ETF shares with the U.S. Securities and Exchange Commission. However, BlackRock’s head of digital assets, Robert Mitchnick, said a list of basket crypto ETFs beyond Bitcoin (<a href="https://crypto.news/price/bitcoin/">BTC</a>) and Ethereum seemed unlikely. 
 You might also like: <a href="https://crypto.news/why-blackrock-is-holding-back-on-solana-etf/"> Why BlackRock is holding back on Solana ETF </a> 
<h2 class="wp-block-heading" id="ethereum-s-defi-role-and-institutional-promise">Ethereum’s defi role and institutional promise</h2> 
Conversely, Ethereum remains the go-to application layer for building decentralized applications. The largest dapps, such as Aave and Uniswap, were originally native to Ethereum. 
Ethereum gained renewed interest following a technological upgrade that significantly reduced fees, making trading and swapping on Ethereum affordable again. The upgrade, called Dencun, was quickly followed by institutional demand for ETH on Wall Street. Issuers like BlackRock, Bitwise, Fidelity, and Grayscale received authorization from the SEC to list spot ETH exchange-traded fund shares. 
Spot Ethereum ETFs have traded for about six days, with Grayscale outflows weighing heavily on the new offering. According to Nansen, $750 million exited products in the first four out of five trading days. 
Debates abound about what the ETFs mean for Ether’s future price. One perspective <a href="https://crypto.news/expert-spot-ethereum-etf-to-drive-ether-demand/" target="_blank" rel="noreferrer noopener">suggests</a> that supply dormancy caused by ETF buying will propel on-chain staking yields, while some argue against the development being <a href="https://crypto.news/experts-spot-ether-etfs-not-the-boon-industry-thinks/" target="_blank" rel="noreferrer noopener">regarded</a> as an industry boon. 
Regardless, on-chain data solidifies Ethereum as a DeFi market leader. Glassnode reported that daily active addresses on Ethereum and its L2s increased by 127% since the start of the year. 
<figure class="wp-block-image size-full">
 <picture loading="lazy" decoding="async" class="wp-image-14288931"> 
 <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/08/photo_5861796925387424523_y.jpg.webp"> 
 <img loading="lazy" decoding="async" width="1280" height="879" src="https://crypto.news/app/uploads/2024/08/photo_5861796925387424523_y.jpg" alt="Solana flips Ethereum DEX volume with $55b - 4"> 
 </picture> 
 <figcaption class="wp-element-caption">
 Daily active Ethereum address data | Source: Glassnode
 </figcaption>
</figure> 
 Read more: <a href="https://crypto.news/bitcoin-etfs-hold-inflows-by-a-string-ethereums-outflows-start-again/"> Bitcoin ETFs hold inflows by string, Ethereum’s outflows start again </a>

Solana flips Ethereum DEX volume with $55b

Table of Contents

crypto.news

Other articles published on Aug 1, 2024

Donald Trump Launches Bitcoin-Themed Sneakers, Quickly Sell Out

The Launch Of Simon's Cat Meme Coin Will Boost FLOKI Value

Analysts Predict Bitcoin’s Future Prices

BONK price prediction – How FOMC, Bitcoin will dictate memecoin’s short term

Telegram In-app Browser Launched, Supports Web3 Decentralized TON Sites

Ripple’s $10 million investment powers launch of tokenized treasury bills on XRPL

Join our free newsletter for daily crypto updates!