Solana Has Greater Economic Value than Ethereum

DEX trading volumes on Solana have skyrocketed once again, leading onchain markets across all blockchains and recording a new all-time high in weekly market dominance.

Spearheaded by TruthTerminal’s viral $GOAT token, AI memecoins have exploded across the network, with various derivatives and $GOAT spin-offs reaching 8-9 figure market capitalizations.

Solana’s flourishing onchain markets have boosted the network’s Real Economic Value, flipping Ethereum to reclaim the top position and reassert itself as the industry’s most valuable blockchain.

Solana Commands 33.4% of Weekly DEX Trading Market Dominance

While Solana has routinely flipped the Ethereum Layer-1 in DEX trading volume throughout 2024, its lead has never been this dramatic. 

Solana currently dominates the Ethereum Layer-1 onchain trading volume, facilitating roughly 109% more volume in the last 24 hours and 86% more over a 7-day time frame. 

According to DefiLlama data, this represents Solana’s new all-time high in DEX trading volume dominance by blockchain, commanding 33.4% of market share (pictured in orange).

Unsurprisingly, TruthTerminal’s $GOAT AI memecoin is the greatest source of onchain trading activity. In the past 24 hours, $GOAT has witnessed over $417M in volume, ranking it 13th among all crypto assets.

Spurred on by explosive onchain trading activity, the Solana network’s economic value has also enjoyed a significant boost.

Real Economic Value Turns in Solana’s Favor

On top of dominating Ethereum in onchain trading volume, Solana is also proving itself as the more economically valuable blockchain of the industry’s leading Layer-1 blockchains.

Earlier this week, Solana flipped Ethereum in Real Economic Value, a metric tracking blockchain transaction fees and MEV tips. 

After surpassing Ethereum on the 19th of October, Solana has put significant distance between the two chains. According to Blockworks data, Solana’s Real Economic Value is 85% higher than Ethereum’s, suggesting that Solana’s high-throughput, low-cost transaction model is better suited for scalability.

Solana’s surging economic value is largely due to an increase to network congestion. With the network under high demand, traders are forced to raise their priority fees to ensure their transactions execute successfully.

Orca Leads Trading Volumes for Project Tokens

While memecoins are undoubtedly the center of attention in Solana’s flourishing onchain markets, project tokens are also catching a bid. Solana DeFi tokens are surging alongside growing network activity, with $JUP, $RAY, and $STEP all up over 20% on a weekly time frame.

Price increases in established Solana ecosystem tokens suggests that traders may be rotating memecoin profits into more long-term positions. 

Raydium and pump.fun may be the heart of Solana memecoin trading, but evidence suggests that Orca remains the DEX of choice for trading project tokens. Blockworks data posits that Orca handles roughly 42.9% of non-memecoin trading activity.

Solana’s newfound dominance as the leading onchain trading market is a positive indicator for network growth. With Q4 signaling a turn-around after months of sideways markets, network participants are enthusiastic about Solana’s momentum and the continued growth of its DeFi scene.

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