Solana Finally Flips All EVMs? Not Exactly, Expert Clarifies

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As a seasoned analyst with over two decades of experience in the crypto market, I find myself constantly intrigued by the dynamic nature of this ever-evolving landscape. The recent claims that Solana (SOL) has surpassed all EVM blockchains in on-chain trading volume has certainly piqued my interest, but upon closer inspection, the picture appears more nuanced than initially suggested.

With an increasing number of reports suggesting that Solana (SOL) has surpassed all EVM blockchains in on-chain trading volume, a pseudonymous DeFi expert named @jpn_memelord took a closer look at this trend. However, his data analysis presents a more complex image, implying that Ethereum (ETH) may still be the dominant player.

Solana’s (SOL) trading volume comes from illiquid pools and meme coins, data says

Over the past 30 days, Solana (SOL) has outperformed Ethereum Virtual Machine (EVM) chains in trading volume primarily due to low-liquidity pools and meme coins created on Pump.Fun. However, if we focus solely on stable liquidity pools with substantial volume, Solana (SOL) might not come close to this “flippening.” This perspective was expressed by a DeFi researcher known as @jpn_memelord on X.

There’s been plenty of discussion about Solana potentially overtaking all Ethereum Virtual Machine (EVM) chains in terms of trading volume. To determine if this is just a temporary trend or a significant shift, I delved into the quality of liquidity pools across leading blockchains.

Let’s explore this intriguing possibility together and find out if Solana has truly dethroned the current leaders. 🐰👇

— jpn memelord🛡️ (@jpn_memelord) October 25, 2024

In order to focus on the well-established pools, the author decided to lower the rankings of recently created or low-activity pools in his report. This allowed him to concentrate on the pools with a more substantial history, as he stated. As a consequence, only one out of the top 20 established pools was found to be operating on Solana, specifically Whirlpool’s USDC-SOL pool.

10 Ethereum (ETH) pools from the top 20 have been integrated, with Base serving as the host for five of these, and Arbitrum and Binance Smart Chain each hosting two. The Aerodrome Finance USDC-WETH pool is notable due to its $7.2 billion in monthly trading volume. However, Uniswap’s USDC-WETH pool significantly outshines all other competitors in terms of Total Value Locked (TVL).

The review of 150 biggest DeFi pools by TVL looks slightly better for Solana (SOL), but still very far from what its supporters might be expecting:

The total volume in the leading 150 pools on Solana is substantial, yet it falls short of overtaking all Etherium Virtual Machine (EVM) chains, even failing to surpass Ethereum itself (though it’s nearly there).

As a researcher, I can share that my own investigations led me to the revelation that the blend of trading volume and sustainability factors significantly piqued BlackRock’s interest in Ethereum (ETH), driving them to delve deeper into its potential.

Solana’s Pump.fun is back, its Tron-based clone is out

Nevertheless, it’s worth noting that Solana (SOL) achieved a fresh high in on-chain trading activity, thanks to the return of its user-friendly meme coin launching platform, Pump.fun.

Following a significant drop in mid-September, it’s surprising that Pump.fun managed to rebound and effortlessly surpassed its previous August records, according to Dune’s data.

Within about a month and a half, there was an astonishing 700% increase in activities on Pump.fun. On October 24, 2024, a remarkable number of over 36,000 tokens were released, setting a new record for the protocol.

In recent weeks, the daily creation of SunPump’s tokens on the TRON blockchain has been significantly low, with fewer than 50 tokens being produced each day.

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2024-10-26 16:12