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Sujit Kumar
Oct 26, 2024
by Sujit Kumar

Solana Surpasses EVM Blockchains in Trading Volume, but Liquidity Remains a Concern

Solana Surpasses EVM Blockchains
Recent reports highlight that Solana (SOL) has exceeded Ethereum (ETH) and other EVM blockchains in on-chain trading volume. However, crypto researcher @jpn_memelord shared that this growth is largely driven by low-liquidity pools and meme coins on platforms like Pump.fun, casting doubt on Solana’s sustainability. When considering only well-established pools with significant, stable liquidity, Ethereum remains dominant, with Solana lagging far behind.

The DeFi researcher’s analysis excluded smaller and newer pools to better assess sustainable trading volumes. Among the top 20 liquidity pools, Solana hosted just one — the Whirlpool USDC-SOL pool. In contrast, Ethereum held 10 of the top 20 pools, while Base supported five and Arbitrum and BSC each hosted two. Ethereum’s USDC-WETH pool on Uniswap notably leads by Total Value Locked (TVL), dwarfing Solana’s contributions.

Pump.fun Drives Solana’s Record On-Chain Activity

Solana’s recent spike in trading activity can also be attributed to Pump.fun, a no-code meme coin creation platform that surged back into popularity after a September downturn. On October 24, 2024, Pump.fun reached an all-time high, with over 36,000 tokens launched in a single day. In contrast, its Tron-based counterpart, SunPump, has seen significantly lower activity, with under 50 tokens created daily in recent weeks.

Ethereum’s Stability Continues to Attract Institutional Interest

The sustainability of Ethereum’s high-liquidity pools is one reason for BlackRock’s interest in exploring ETH as an investment asset. Ethereum’s dominance in high-TVL DeFi pools indicates a robust liquidity ecosystem, in contrast to Solana’s reliance on low-liquidity and meme coin trading volume.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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Solana Surpasses EVM Blockchains
Solana Surpasses EVM Blockchains in Trading Volume, but Liquidity Remains a Concern
Sujit Kumar
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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