Solana’s DEX activity is on course to catch up with Ethereum’s, thanks to the great boom witnessed by tokens on the network. Presently, it boasts about 57% of the activities carried out on Ethereum. However, Ethereum’s edge in terms of higher liquidity and wider adoption through chains like Uniswap would make it difficult.
The network’s DEX activity has enjoyed a stellar run since the beginning of the year, trying to move close to Ethereum’s levels. Last quarter, the network saw a new token alongside inflows into Raydium putting the DEX volumes close to Ethereum.
Solana’s biggest boost now is the capacity of Raydium, a chain that provides tough competition for Uniswap due to its presence on 23 other chains. It is now climbing up to become a top DEX based on factors like volumes and fee generation. Solana also has a small lending system compared to Ethereum, but that isn’t any problem going by Sky Ecosystem’s ability to move some of its assets.
DappRadar puts Raydium into the bracket of top trending applications as of December 21, with Jupiter DEX and Meteora also pushing some volumes into the Solana ecosystem. DEX trading on Solana is also cheap save for some hidden costs and the need for users to bribe validators to complete their swaps.
Raydium inches close to Uniswap as SOL breaks out
Raydium recently saw its activity climb to $4.5 billion in 24 hours, driven by the influence of meme tokens on the network. In comparison, Ethereum-based Uniswap V3 still handles $1.8 billion in volumes daily. Raydium also experiences active fluctuations of its top pairs, as it responds to rollovers of new tokens.
Raydium is also enjoying the benefits from new SOL inflows and a bigger market price which has pushed its total value locked towards $2.2 billion. Raydium saw peaky fees in a day, recording more than $15 million. Although it returned to about $12 million later, it is still an impressive peak.
Meanwhile, SOL has finally broken out to touch $230, after months of trading sideways during the bear market. The recent DEX activity and USDC inflows have raised certain questions about SOL being undervalued.
SOL is trading at $242, while Ethereum is at $3,100. If market capitalization is to be considered, SOL is about 33% of Ethereum’s value. However, if certain metrics like network growth, users, and fees are catching up, it is undervalued compared to Ethereum.
Solana bot activity flips Ethereum’s
Developers often launch meme coins on Solana after launching it on Ethereum. However, there have been many discussions surrounding its adaptability for the future and its ability to onboard new users. Ethereum has a daily active user base of 500k, while Solana has 6 million daily wallets.
Solana is a bot-driven network, always engaging in a DEX bot war. This means that the activities on the DEX increase the bot activities. The network has about 82% of bot trading status, with the value recording a jump of 47% since October.
The bot activities on Solana are ahead of Ethereum’s, with both networks on par as of October. Solana was able to leapfrog Ethereum since that period due to its daily bot trades of more than $438 million. Users leverage bots to acquire new meme tokens, carry out fast trades at predetermined rates, and other uses.