The Solana (SOL) market cap also overtook BNB for the second time this year.
Solana-based memecoins are driving these increases.
Ethereum competitor Solana recently witnessed a surge of trading on its decentralized exchanges (DEXs), briefly flipping Ethereum in 24-hour trading volumes.
This has been fueled, in part, by the recent successes of Solana-based memecoins such as Bonk (BONK), and dogwifhat (WIF), both of whom have posted major gains in the past month.
Solana DEX Volumes Skyrocket
As per data from DeFi Llama, Solana DEX trading volumes overtook Ethereum for a moment between March 3 and March 4, 2024.
Solana DEX volumes skyrocket.
On March 3, 2024, Solana DEX volumes sat at $2.078 billion, overtaking Ethereum volumes which were then $1.827 billion. The next day, Ethereum had retaken the top spot, but just barely.
On March 4, 2024, Ethereum DEX volumes were $2.589 billion, with Solana not far behind with $2.487 billion. Now, that gap has widened significantly, as has the volumes, with Ethereum DEXs currently posting $4.837 billion in total trading volume versus Solana’s $3.174 billion.
Solana Memecoins
A major contributor to this recent success is the ongoing rally that has seen Solana-based memecoins like BONK, and WIF post absurd gains in recent weeks.
As per data available on CoinGecko, WIF has posted a 24-hour trading volume of around $1.059 billion breaking its market cap past the $2 billion mark for the first time since launching just last year in December.
WIF memecoin now exceeds $2 billion market cap.
The BONK token is neck and neck with WIF with 24-trading volumes sitting at $1.055 billion, though its $2.113 billion market cap exceeds WIF by over $100 million.
BONK and WIF are neck and neck.
That’s not to say that memecoin season is exclusive to the Solana network, According to data from Dune, the weekly trading volumes of Ethereum’s memecoin market are on a constant upward trajectory, highlighting a strong appetite for these rather odd crypto tokens.
Ethereum-based memecoin trading volumes continue to rise.
SOL Flips BNB
As well as handling almost triple the trading volume of Binance’s BNB token, in another recent victory, the Solana (SOL) token briefly surpassed BNB’s market cap for the second time this year.
— SolanaFloor | Powered by Step Finance (@SolanaFloor) March 5, 2024
After taking fourth place from BNB yet again, BNB has retaken its position. At the time of writing, BNB commands a market cap of $63.58 billion, and SOL holds a market cap of $57.62 billion.
SOL remains hot on the trails of BNB.
Could Solana Match Ethereum?
Though there remains a major gap between Ethereum and Solana in terms of number of users, market cap, and trading volumes, it is not improbable that SOL could indeed hit similar, if not better, market metrics than Ethereum in the long run.
But in order to first get there, SOL must dethrone its nearest competitor, BNB, which it already has beat in terms of 24-hour trading volume at the time of writing. To reach Ethereum’s level, SOL trading volumes would have to multiply by 5, and its market cap would need to increase tenfold.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
