Solana’s decentralized exchange (DEX) ecosystem has continued its dominance over Ethereum, registering a total trading volume of $60 million this month—almost double Ethereum’s $34 million, according to DeFiLlama.
This marks the fourth consecutive month that Solana has led in DEX trading activity, fueled by lower fees, higher transaction speeds, and strong memecoin speculation.
In January alone, Solana-based DEXs recorded $258 billion in total trading volume, nearly three times Ethereum’s $86 billion, according to DefiLlama.
The network’s efficiency and cost advantages have attracted developers and traders, cementing its position as a key player in decentralized finance (DeFi).
Solana Generates Higher Revenue Than Ethereum
Despite its reputation as a low-cost blockchain, Solana has outperformed Ethereum in network revenue. In February, Solana has generated $25 million in revenue, compared to Ethereum’s $16 million. This follows a January revenue of $124 million, which surpassed Ethereum’s $109 million for the same period.
The SOL-ETH trading ratio, which reached 0.09 in January, has since pulled back to 0.075. However, Solana’s growing revenue and trading volume support the case for its continued market strength against Ethereum.
Solana Price Outlook: Potential Recovery in Sight
While Solana has experienced a 20% decline since hitting a January 19 high of $252.42, the market may be shifting in favor of a recovery.
- SOL recorded its first spot inflow of February, with $16 million in new investments on Monday, signaling renewed investor interest.
- Balance of Power (BoP) indicator, a momentum metric, remains positive at 0.23, reinforcing the strength of buyers in the market.
Currently trading around $200, Solana is testing a crucial support zone at the lower boundary of its ascending parallel channel. Holding this level could provide a foundation for a rally back toward $258.66, the next major resistance level.
Despite its impressive trading activity, Solana’s total value locked (TVL) stands at $9 billion, significantly lower than Ethereum’s $57 billion. However, its rapid growth in DEX dominance and higher revenue generation suggest it is well-positioned for continued adoption and price appreciation.
