Solana takes the cake on these fronts as it outperforms Ethereum

Journalist

Posted: December 29, 2023

• Daily swap transactions on Solana spiked to 9.25 million on Christmas day.
• Solana outperformed Ethereum in 7-day DEX volume.

Solana [SOL] vastly outperformed other blockchains in terms of decentralized finance (DeFi) activities lately.

Swaps on Solana surge

According to AMBCrypto’s analysis of Flipside’s statistics, daily swap transactions on Solana spiked to 9.25 million on Christmas day. In comparison, the bigger smart contracts network Ethereum [ETH] could only clock 135,000 transactions.

Source: Flipside

Crypto swap, as is well known, allows one to instantly trade one cryptocurrency for another, without the involvement of any crypto-to-fiat exchange. It has evolved into one of the most critical indicators of a protocol’s DeFi growth.

Solana’s high number of swaps reflected increased confidence and demand for its DeFi protocols, including decentralized exchanges (DEXes).

A peek at Solana’s DEX growth

Over the last week, Solana-based DEXes logged trades worth $10.74 billion, according to AMBCrypto’s examination of DeFiLlama’s data. With this, it outperformed even the likes of Ethereum, which executed $9.42 billion in trades.

In fact, December has turned out to be the most prolific month for Solana’s DEX activity. Since the start of the month, more than $24 billion have been settled as of this writing, a phenomenal threefold increase over the previous month.

Source: DeFiLlama

Aside from the frenzy on its DEXes, the network saw a significant increase in the USD value of cryptos locked on its DeFi projects.

Over the last month, Solana’s total value locked (TVL) has more than doubled to $2.19 billion at press time. In fact, Solana had the fastest monthly growth rate among the top ten networks.

Source: DeFiLlama

As obvious, the jump was primarily driven by SOL’s rally at the price charts. However, the SOL-denominated TVL also witnessed an increase of 5.6% over the week.

How much are 1,10,100 SOLs worth today?

SOL retraces as traders lock in gains

SOL witnessed a sharp pullback in the last 24 hours as impatient traders decided to profit-take. This retracement caused SOL’s market cap to decline, pushing it to the fifth position, according to CoinMarketCap.

However, on zooming out, it was all green. SOL added gains of 87% over the last month and nearly 11x times more than what it was at the beginning of the year.