Solana Surpasses Ethereum in DEX Volume with 94.8 Billion Dollars in 30 Days

Solana has made significant strides in the decentralized exchange (DEX) sector, surpassing Ethereum with a cumulative DEX volume of 94.8 billion dollars over the past 30 days, compared to Ethereum's 64.8 billion dollars. This achievement is driven by platforms like Jupiter, Raydium, and Zeta Markets, which have shown impressive growth, with Zeta Markets alone experiencing a 212% increase in volume over the past month. Additionally, Solana's total value locked (TVL) has increased by 14% to 11 billion dollars, and it has generated 48.7 million dollars in fees, surpassing Ethereum's 36.9 million dollars.

Despite these impressive figures, overall network activity on Solana has decreased by 91% compared to January. This discrepancy between infrastructural performance and organic user activity raises questions about the sustainability of Solana's growth. While Solana's robust base layer architecture attracts developers, the lack of active and engaged users could hinder its long-term success. Davo from Drift Protocol notes that Solana's architecture, which lacks an off-chain matching engine, may struggle to reassure markets and maintain user engagement.

One of the factors contributing to the decline in network activity is the decrease in popularity of memecoins. These coins, which were once a significant driver of transactions and fees on the Solana network, have seen a sharp decline in value. Giga, Popcat, Bonk, and WIF have all experienced significant drops in value, leading to a decrease in network traffic and momentum. Pump.fun, a platform that was central to the memecoin movement, is even considering launching its own independent blockchain, which could further weaken the Solana ecosystem.

The decline of memecoins marks the end of a speculative era for Solana. The challenge now is to turn technical success into lasting adoption. Solana must focus on depth rather than speed, fostering sustained engagement and user activity to maintain its growth. Without this, the impressive numbers may not be enough to ensure long-term success.

Solana faces several challenges that could impact its momentum. First, 3.55 million SOL tokens, valued at around 600 million dollars, are set to be unlocked by August, which could flood the market and impact the token's price. Additionally, Solana is vulnerable to MEV attacks, such as sandwich and front-running attacks, which exploit the network's speed. Furthermore, Hyperliquid, a competitor, has recorded a volume 84% higher than its five largest rivals combined, leading some Solana DApps to consider migrating.

However, there is a potential catalyst for Solana's growth: the anticipated approval of a Spot Solana ETF in October. This could reignite hopes for a bullish rally, as derivatives markets currently show a lack of confidence with negative funding rates and shorts under pressure. Davo highlights the native use of assets as collateral on Solana as a potential strength, and the solid network structure could become an asset again if connected to renewed storytelling.

In conclusion, Solana's recent achievements in the DEX sector are impressive, but the network faces challenges that could impact its momentum. The decline in memecoin popularity, the upcoming token unlock, MEV attacks, and competition from Hyperliquid all pose threats to Solana's growth. However, the anticipated approval of a Spot Solana ETF and the potential for renewed storytelling could provide a catalyst for Solana's continued success. The Ethereum–Solana duel is far from over, and more and more analysts anticipate a shift in the market dynamics. For Solana, the game may just be beginning.