TLDR
- Solana has surpassed Ethereum with over 5 billion DEX transactions compared to Ethereum’s 1.138 billion in the past three months, with transaction volumes reaching $1.9 trillion versus Ethereum’s $504.83 billion
- Active addresses on Solana grew to 344 million, five times more than Ethereum’s 82.56 million, though Ethereum maintains higher total value locked at $64.47 billion compared to Solana’s $11.38 billion
- SOL recently hit a new all-time high of $295 before experiencing a 22% correction, currently trading at $243
- Technical analysts note SOL is in a compression phase around previous all-time highs, suggesting potential for another upward move
- Key support level at $243 needs to be maintained to prevent further downside, with $265 serving as an important resistance level
Solana has marked a major milestone in its evolution, processing over 5 billion decentralized exchange (DEX) transactions in the past three months, substantially outpacing Ethereum’s 1.138 billion transactions during the same period. This surge in activity represents a watershed moment for the blockchain platform, which has seen its DEX transaction volume reach $1.9 trillion, compared to Ethereum’s $504.83 billion.
The platform’s growth extends beyond transaction counts. Data from Dune Analytics reveals that Solana’s network has attracted 344 million active addresses, creating a user base five times larger than Ethereum’s 82.56 million. This metric includes activity across Ethereum’s Layer 2 solutions, including Arbitrum, OP Mainnet, Base, ZORA, Scroll, Polygon zkEVM, zkSync Era, Celo, and Linea.
While Solana leads in transaction metrics, Ethereum maintains its position in total value locked (TVL). According to Defillama, Ethereum’s TVL stands at $64.47 billion, while Solana holds $11.38 billion. This disparity highlights the different strengths of each network, with Solana focusing on transaction throughput and Ethereum maintaining its role as a store of value.
The price of SOL, Solana’s native token, recently achieved a new all-time high of $295, demonstrating strong market confidence in the network’s growth. However, the price subsequently experienced a 22% correction, a movement that analysts describe as a natural consolidation phase.
Currently trading at $243, SOL has established this level as a crucial support point. Market observers note that maintaining this price level is essential for preventing further downside movement. The $265 mark has emerged as a key resistance level, with analysts suggesting that a breakthrough could signal renewed upward momentum.
Technical analysis from industry expert Jelle indicates that Solana is experiencing a compression phase around its previous all-time highs. This pattern often precedes major price movements, with the current consolidation viewed as a potential launching pad for future gains.
More violent moves, as expected — and $SOL is compressing right around the previous all-time highs.
These things are necessary, especially after such a strong move.
Good to see the key level holding still, feels like a matter of time before the next leg higher.
Tic, toc. https://t.co/JTLW0OSh6X pic.twitter.com/y05XmAe4fc
— Jelle (@CryptoJelleNL) January 23, 2025
The growth in Solana’s network metrics aligns with predictions made in November 2024 by Bitcoin.com News, which suggested that Solana could potentially outpace Ethereum due to its speed and cost advantages. The current data appears to support this forecast, particularly in terms of transaction volume and user activity.
The expansion of Solana’s ecosystem has attracted increased attention from institutional investors. The possibility of a Solana ETF approval has added another layer of interest to the platform’s growing profile in the cryptocurrency market.
Market participants are closely monitoring the relationship between network growth and price action. The surge in transaction volume and active addresses suggests strong fundamental demand for Solana’s blockchain services, independent of price speculation.
The platform’s ability to handle high transaction volumes while maintaining relatively low fees has contributed to its growing adoption. This technical capability has made Solana particularly attractive for DEX trading, as reflected in the recent transaction statistics.
Recent volatility in SOL’s price has not deterred network activity, with transaction volumes remaining robust throughout price fluctuations. This resilience suggests that network usage is driven by genuine utility rather than purely speculative interest.
The expansion of Solana’s DEX ecosystem has created a self-reinforcing cycle of adoption, where increased liquidity attracts more traders, leading to higher transaction volumes. This network effect has helped establish Solana as a major player in the DEX trading space.
Looking at the technical structure of SOL’s price action, the current consolidation phase shows the market digesting recent gains while maintaining key support levels. The compression pattern noted by analysts suggests that traders are preparing for the next directional move.
The latest data shows that SOL’s price movements have become more volatile as it tests previous resistance levels. However, the maintenance of support at $243 indicates continued buyer interest at current price levels.
