Data from CoinGeko shows that Solana-based decentralized exchange (DEX) Jupiter recently surpassed Ethereum’s foremost DEX Uniswap in an important metric. This has created a narrative that the SOL network might indeed be ready to take over Ethereum’s position as the King of Decentralized Finance (DeFi).
Jupiter Surpasses Uniswap In Trading Volume
According to CoinGeko, Jupiter has recorded over $510 million in trading volume in the last 24 hours, surpassing Ethereum’s Uniswap V3 and V2, which recorded $455 and $76 million respectively. Jupiter’s recent dominance is believed to be partly due to the recent WEN airdrop that occurred on its launchpad.
This airdrop caused a splurge of new money into the Solana ecosystem and Jupiter in particular. While that may be the case, it also highlights a new trend that looks to be developing in the crypto ecosystem. This is in reference to the fact that the Solana network has been going toe-to-toe with Ethereum as of late.
Data from DeFiLlama shows that beyond Jupiter’s dominance, SOL is actually matching Ethereum’s numbers. In the last 24 hours, Solana recorded a trading volume of $704 million to Ethereum’s $741 million.
In December 2023, Solana surpassed Ethereum in 7-day DEX volume for the first time in history. Data from the Block shows that Solana also outperformed Ethereum in terms of non-fungible token (NFT) trading volume during that same period.
SOL price at $97 | Source: SOLUSD on Tradingview.com
Solana To Overtake Ethereum?
Ethereum has long been known as the network housing the foremost decentralized applications (dApps) and has continued to dominate the DeFi landscape. However, that could change soon enough if Solana’s runs become constant. This is more interesting, considering that Solana has always been referred to as the “Ethereum killer.”
The SOL network is already known to have an edge over Ethereum, considering that the former is faster and more cost-effective than the latter. Ethereum’s gas fees have also continued to pose major concerns for users, and this cannot be sustained if mainstream adoption of DEXs is to be achieved.
Moreover, it has become evident that more liquidity is flowing into Solana, something that could entice more DeFi users into the ecosystem. It is worth mentioning that the WEN airdrop was just the tip of the iceberg, as the JUP, Jupiter’s native token, airdrop is set to take place on January 31.
The highly-anticipated airdrop is expected to drive considerable attention and trading activity towards Jupiter and Solana. For one, those eligible for the airdrop are likely to diversify their funds across the SOL ecosystem. Meanwhile, those who missed out on this airdrop are likely to look farm other DeFi projects on Solana in hopes that they will be eligible once these projects in question roll out their native tokens.
Featured image from Quora, chart from Tradingview.com