Ethereum

Solana

Arbitrum

Base

Solana has beaten Ethereum in monthly DEX trading volume for the first time ever. In July, SOL hit a whopping $55.876 billion in trading <a href="https://defillama.com/dexs/chains" rel="nofollow noopener" target="_blank">volume</a>, while Ethereum trailed behind with $53.868 billion.&nbsp; 
This is a big deal, especially considering Ethereum has always been the top dog in this space. But other chains are making waves too. Arbitrum clocked in at $24.569 billion, BSC at $17.888 billion, and Base at $15.554 billion.&nbsp; 
But let’s focus on what’s making SOL shine right now. 
<h3 id="b-why-solana-is-winning-b">Why Solana is winning</h3> 
So, why is Solana suddenly kicking Ethereum’s ass? A big part of it is speed. SOL can process thousands of transactions per second. 
Compare that to Ether, which can only handle about 15 transactions per second. That’s a massive difference for traders. Another reason is the cost. SOL’s transaction fees are super low, even when the network is busy.&nbsp; 
On the other hand, Ethereum’s gas fees can get pretty high, which turns off a lot of users who don’t want to pay through the nose for every little transaction. 
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 <img loading="lazy" decoding="async" class="wp-image-562934 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/08/Screenshot-2024-08-02-at-07.41.48.jpg" alt="Solana beats Ethereum in trading volume for the first time ever" width="1920" height="763" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/08/Screenshot-2024-08-02-at-07.41.48.jpg 1920w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/Screenshot-2024-08-02-at-07.41.48-300x119.jpg 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/Screenshot-2024-08-02-at-07.41.48-1200x477.jpg 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/Screenshot-2024-08-02-at-07.41.48-768x305.jpg 768w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/Screenshot-2024-08-02-at-07.41.48-1536x610.jpg 1536w" sizes="(max-width: 1920px) 100vw, 1920px">
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Scalability is another big win for SOL. It uses a unique consensus mechanism called Proof of History, combined with Proof of Stake. This setup lets it handle a high volume of transactions without compromising on decentralization or security.&nbsp; 
Ethereum, meanwhile, has struggled with scalability issues for a while, though its creator Vitalik Buterin is doing everything in his power to fix that. 
Developers love Solana because it’s cost-effective. Building and deploying smart contracts on Solana is cheaper and faster than on Ethereum. 
<h3 id="b-sol-s-market-dynamics-b">SOL’s market dynamics</h3> 
In the last few months of 2023, Solana started outperforming Ethereum in several ways. One of the most noticeable areas was meme coins.&nbsp; 
Solana-based meme coins deliver way higher returns compared to those on Ethereum. Celebrity endorsements and strong community support have boosted their popularity by a big margin. 
<img loading="lazy" decoding="async" class="alignnone wp-image-562935 size-full" src="https://www.cryptopolitan.com/wp-content/uploads/2024/08/Screenshot-2024-08-02-at-07.42.20.jpg" alt="Solana beats Ethereum in trading volume for the first time ever" width="1920" height="906" srcset="https://www.cryptopolitan.com/wp-content/uploads/2024/08/Screenshot-2024-08-02-at-07.42.20.jpg 1920w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/Screenshot-2024-08-02-at-07.42.20-300x142.jpg 300w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/Screenshot-2024-08-02-at-07.42.20-1200x566.jpg 1200w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/Screenshot-2024-08-02-at-07.42.20-768x362.jpg 768w, https://www.cryptopolitan.com/wp-content/uploads/2024/08/Screenshot-2024-08-02-at-07.42.20-1536x725.jpg 1536w" sizes="(max-width: 1920px) 100vw, 1920px"> 
For instance, the meme coins had an average return of 8,469% in the first quarter of this year, while Ethereum’s were around 962%. This insane performance attracted a ton of speculative capital to SOL. 
Solana also has a huge number of active daily addresses, over 1.6 million, which is more than any other blockchain, including Ethereum.

Solana beats Ethereum in trading volume for the first time ever

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