Ethereum
Solana takes on Ethereum as the ‘DEX war’ takes a new turn
- Activity on Jupiter, Solana’s largest DEX, has surpassed figures for Ethereum-based Uniswap
- ETH volume remained higher than SOL, while JUP and UNI sentiment differed
Jupiter, a decentralized exchange built on the Solana blockchain, has overtaken Uniswap as the DEX with the highest number of unique active wallets (UAW). AMBCrypto noticed this after looking data from DappRadar.
At press time, UAWs on Jupiter exchanges exceeded 205,000. Uniswap, built on Ethereum [ETH]had fewer than 170,000.
How did it happen?
UAW measures crypto wallet addresses that interact with a network or applications. If the metric increases, it implies an increase in user activity. On the other hand, a decrease suggests a decrease in attention.
As can be seen below, Jupiter’s active wallets have increased over the past 24 hours while Uniswap’s have decreased. However, it’s not just about the DEXs mentioned. Instead, it speaks more about the competition between Solana and Ethereum.
Source: DappRadar
For years, Ethereum has dominated Solana on this front. However, this cycle has been different, and there are also reasons related to it. For starters, Solana is the chain that produces most of the top memecoins.
Although a few appeared on the blockchain developed by Vitalik Buterin, it could not match Solana. For example, you could mention dogwifhat [WIF], Bonk [BONK]and Popcat [POPCAT] like some of the memecoins that have grown incredibly on Solana. On the other hand, PEPE seems to be the only one to come out of the other.
Beyond the emergence of tokens, another factor that has played a role is transaction fees. Surveys found that the cheap fees offered by Solana helped build merchant loyalty. Although fees on Ethereum are now lower than before, they are still far from those on Solana.
Simply put, the DEX buyback is the result of a combination of these factors.
That being said, on-chain data also revealed that Ethereum volume is still much higher than that of Solana.
Source: Santiment
ETH, UNI, surpass SOL, JUP on certain fronts
At press time, Solana’s volume stood at $3.32 billion. Ethereum, on the other hand, recorded a figure of $12.39 billion. Price-wise, SOL has dominated ETH in terms of growth.
At the time of writing, SOL was changing hands at $139.03 – a rise of 537.65% over the past 365 days. During the same period, the price of ETH appreciated by “only” 61.10%.
If this performance remains the same in the coming months, SOL could then reverse ETH throughout this cycle. However, it is important to note that the mentioned DEXs also have their native tokens.
For Jupiter, the ticker is JUP. Uniswap’s UNI is more popular because it is much “older” than the first. At the time of writing, JUP’s price was $1.02, representing an increase of 75.53% over the last 90 days.
Meanwhile, UNI changed hands at $7.08 after rising 14.54% over the same period. However, regardless of the price development, the weighted sentiment of the Solana-based JUP was negative.
UNI, based on Ethereum, was in the green, indicating that market participants are more optimistic about this than JUP. However, sentiment without action may not affect prices as JUP may continue to outperform UNI.
Source: Santiment
Realistic or not, here it is Market capitalization of SOL in terms of ETH
For Ethereum and Solana, the battle may not end anytime soon. Therefore, participants may need to keep an eye on the developments of their respective blockchains.