Solana, a significant player in smart contract platforms, has been gaining traction due to its high-speed transactions and low fees. Following a peak in 2021, Solana’s price experienced a decline, but it now aims to reach the $200 mark, potentially challenging Ethereum‘s dominance in the sector. Ethereum, known for its robust network, is anticipating the Dencun upgrade which promises to slash fees for layer2 solutions by a remarkable 90%.
Transaction Volume Leadership
Recent figures show that Solana has eclipsed its rivals in transaction volume over the last six months, with $1.7 trillion processed, outperforming Ethereum’s $1.1 trillion and Tron‘s $869 billion. This surge has placed Solana at the forefront of blockchain-based payment systems.
Increased DeFi Activity on Solana
The Solana network has seen heightened DeFi protocol activity, leading to a surge in liquidity. Record-breaking monthly transactions and daily active users, which have soared past 800,000, indicate the platform’s growing popularity.
While Solana has outpaced Ethereum in certain aspects, it lags in total value locked (TVL) and NFT sales volume. Despite its advantages of speed and cost-efficiency, Solana’s user base generates less value than Ethereum’s.
The influx of interest in Ethereum’s layer2 solutions may further solidify its market position, casting doubt on Solana’s ability to surpass Ethereum in value shortly. The outcome of Ethereum’s Dencun update could influence the dynamics between these networks, as more users might prefer solutions with lower fees.