Last December, crypto trading on Solana-based decentralized exchanges (DEXes) briefly surpassed that on Ethereum-based DEXes as meme coins like BONK surged massively. The same scenario has happened again, thanks to growing excitement over Jupiter’s airdrop.
On Monday, decentralized exchanges running on Solana processed $710 million worth of trades, while Ethereum-based exchanges recorded $695 million in trading volume, according to DeFiLlama data.
However, as of this writing, Ethereum exchanges are back on top after posting over $740 million in trading volume in the last 24 hours. Solana DEXes, on the other hand, have processed trades worth $709 million. Moreover, Ethereum’s 7-day trading volume is way ahead ($8.8 billion) compared to Solana’s $4.6 billion.
Solana Poses Threat to Ethereum’s Dominance
Although Ethereum continues to stay on top, the recent trend suggests that the blockchain’s dominance is facing a massive threat from Solana, a network that offers faster and cheaper transactions.
As mentioned earlier, Solana flipped Ethereum in December, thanks to meme coins like Dogwifhat and BONK, which boosted the trading volume on decentralized exchanges. The current factor driving Solana trading volume up is the upcoming launch of the JUP token by Jupiter, a Solana-based decentralized exchange aggregator.
The token will launch on January 31st. Close to a million Solana wallets are set to receive free JUP tokens.
It is worth highlighting that yesterday, Jupiter flipped the leading decentralized exchange on Ethereum, Uniswap V3. However, data from CoinGecko shows that Uniswap V3 has recorded a higher trading volume ($628 million) than Jupiter ($572 million) in the past 24 hours.
Why Jupiter’s Trading Volume is Surging
Trading volume on Jupiter has skyrocketed in recent weeks because users were advised last month to trade more on the DEX to increase their chances of becoming eligible for the JUP token airdrop. As part of preparations for Wednesday’s JUP airdrop, Jupiter used its launchpad last week to distribute billions of WEN tokens to over a million eligible users.
However, WEN’s token claiming period only lasted a few days, causing over 250 billion tokens to go unclaimed. As for JUP’s claiming period, it will last until February 25th.
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