Solana
Key Signs Solana Could Outperform Ethereum
- Solana has overtaken Ethereum in terms of DEX volumes.
- The price of SOL has fallen significantly over the past few days.
by Solana [SOL] performance since the start of the year has been extremely positive. Thanks to this dynamic, Solana managed to outperform Ethereum[ETH] in terms of DEX (Decentralized Exchange) volumes.
Solana DEX volumes on the rise
This DEX volume refers to the total value of the cryptocurrency actually transferred between wallets on the Solana network. These transfers occur via DEX swaps, which use liquidity pools on the network and are all verified by Solana validators.
This DEX volume metric is considered a crucial indicator of the fundamental value of a blockchain network. This reflects actual usage within the network ecosystem, as opposed to simple speculation on the price of the token.
By this metric, Solana’s strong DEX volume suggests that it is currently outperforming Ethereum in real-world usage. This could be a sign of growing adoption and future growth potential for Solana.
Source:
Even though DEX volumes for Solana were up, overall activity on the network was down significantly by 10.7% over the past month.
Additionally, the number of code commits on the network also decreased by 20%, signaling a decline in development activity.
Ethereum, on the other hand, has shown growth on both fronts. The total number of active users on the network increased by 2.2% over the past month and the number of code commits jumped 10% over the same period.
Source: token terminal
At press time, SOL was trading at $126.47 and its price was down 5.21% in the last 24 hours, due to the recent market correction. Since May 21, the price of SOL has fallen significantly.
During this period, SOL price exhibited several lows and highs, indicating a downtrend.
The RSI (Relative Strength Index) for SOL has also fallen noticeably over the past few days. It was below the 40 mark, indicating that SOL may be slightly oversold at the time of writing and could soon see a reversal.
Read Ethereum [ETH] Price prediction 2024-25
The Awesome Oscillator (AO) for SOL had declined, indicating a weakening of buying pressure and a potential increase in selling pressure.
However, the volume at which SOL was trading had increased significantly by 212% in the last 24 hours.
Source: Commercial View