Solana DEX volumes According to VanEck’s February Crypto Market Report, decentralized exchange (DEX) volumes have shown resilience despite declining meme coin trading. Solana DEX volumes the report indicates that Solana’s trading activity briefly surpassed that of the Ethereum ecosystem, including its Layer 1 (L1) and Layer 2 (L2) networks.
Solana’s 2025 Growth and Challenges
VanEck’s analysts revealed that Solana’s (SOL) price increased by 191% in 2024, while its on-chain revenues grew by 700%. The blockchain’s low transaction fees, averaging $0.05 compared to Ethereum’s $1.27, have contributed to its ability to handle high trade volumes efficiently. Meme coin trading has added significantly to Solana’s revenue, accounting for approximately 80%. Pump.fun, the network’s meme coin maker, has collected over $577 million in fees within a year.
However, the market has been affected by concerns about insider trading and automated bots purchasing tokens before retail investors, with the LIBRA coin controversy an example. Launched in February, the coin became mired in allegations of insider trading and market manipulation when its value quickly collapsed, leaving investors reeling from millions worth of losses.
That same month, a collapse in meme coin trading led to an 80% drop in Solana’s stablecoin transfers from its January levels. Other trading metrics also declined, with DEX volumes falling by 55%, fees collected dropping by 63%, and MEV activity decreasing by 63%. Despite these setbacks, the network’s overall trading volumes remained competitive with Ethereum’s entire ecosystem. Further, the blockchain is set to undergo multiple protocol upgrades, which are expected to enhance its performance.
Ethereum’s Decline in Revenue
Ethereum has also seen a decline in revenue and overall usage. Over the past year, gas prices have fallen 88%, and its revenue has dropped 93%. The network’s share of total blockchain revenue decreased from 55% in February 2024 to 24% in February 2025. According to Matthew Siegel and Patrick Bush from VanEck, Ethereum’s strategy of encouraging users to move to L2 solutions has reduced activity on its mainnet. As a result, major projects such as Uniswap and Ondo have begun expanding beyond the network.
Meanwhile, its transaction throughput remains lower than competing blockchains, with a recorded maximum of 63 transactions per second (TPS) compared to Solana’s 4,000 TPS. To address these challenges, validators increased gas limits by 20% in February, raising transaction capacity from 30 million to 36 million gas units. The upcoming Pectra upgrade this month includes changes to L2 blob capacity, validator stake limits, and staking processes.
Additionally, the Ethereum Foundation has introduced Intents, a software update that aims to improve transaction efficiency across Layer 2 networks.
Final thoughts
The article provides an insightful analysis of Solana’s current position in the cryptocurrency market, especially compared to Ethereum. It highlights the resilience of Solana’s decentralized exchange (DEX) volumes, noting the impact of meme coin trading and its ability to handle high trade volumes due to low transaction fees. Despite recent setbacks—such as the drop in meme coin activity and some controversy around insider trading—the network’s overall trading volumes remain competitive with Ethereum’s ecosystem.
The 191% increase in Solana’s price and 700% growth in on-chain revenue in 2024 showcase its growth potential. However, challenges like insider trading and market manipulation highlight the need for greater market integrity. The upcoming protocol upgrades also indicate that Solana is working to maintain its edge in scalability and performance.
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