Ethereum Reclaims Its Throne
In a notable shift within the blockchain ecosystem, Ethereum has once again taken the lead as the foremost blockchain for decentralized exchange (DEX) trading, surpassing Solana. This marks the first time since September that Ethereum has outperformed Solana, amidst a notable decline in activity on Solana-based platforms like Raydium and Pump.fun. Despite Ethereum’s resurgence, the value of ETH dipped by over 18% in March, a decrease attributed by experts to inflationary tokenomics and the rising popularity of Tier 2 solutions.
The Numbers Behind Ethereum’s Comeback
Data from DefiLlama reveals that Ethereum-based DEXs achieved a cumulative trading volume of $64.616 billion in March, outstripping Solana’s $52.62 billion by 22%. This resurgence has propelled Ethereum to the top for the first time since September, relegating Solana to second place.
Market Challenges Affect Solana
The leadership transition coincides with a 4.2% decline in total crypto market capitalization, which now stands at $2.63 trillion, following a 20% drop in February. Macroeconomic uncertainties, coupled with the absence of new Bitcoin acquisitions in the US strategic reserve, have driven Bitcoin prices below $80,000. The bearish market trend has also significantly impacted Raydium, a Solana-based DEX once favored for meme coin trading. The downtrend has curtailed speculative activities, particularly in meme coin sectors.
According to DefiLlama, March saw Raydium’s daily trading volume consistently fall below $1 billion, a stark contrast to its $13 billion record on January 18. Solana’s meme coin launch pad also witnessed a dramatic drop in daily volumes, averaging under $100 million in March, considerably down from the $390 million peak in mid-January. Activity on Solana-based DEXs reached its zenith in January with the launch of the TRUMP token.
Ethereum’s Mixed Performance
Ethereum’s outperformance is largely credited to Uniswap, which recorded over $30 billion in trading volume, followed by Fluid with $9 billion. However, while Ethereum’s DEX activity flourished, its native token, ETH, depreciated by over 18% to $1,822 in March. Conversely, Solana’s SOL token saw a smaller decline of 15.8%. Analysts attribute Ethereum’s underperformance to inflationary tokenomics and the increasing traction of Tier 2 solutions.
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