Will Solana ever overtake Ethereum?

Solana (SOL) has emerged as a formidable contender in the decentralized exchange (DEX) space, surpassing Ethereum (ETH) in daily trading volumes since May 8.

Това development sparked discussions about the potential of Solana to break the long-standing dominance of Ethereum in the cryptocurrency market.

Solana's 24-hour trading volume reached $1.314 billion, slightly ahead of Ethereum, which registered $1.29 billion, underscoring its growing influence in the DeFi sector. The growth of Solana's NFT daily traders, reaching a multi-month high of 123, reflects this momentum.

Despite the dynamic activity, Solana's NFT market noted A 16% drop in same-day sales volume, coinciding with a 7% drop in Solana value. This may affect high-value transactions, although it may make buying and issuing NFTs more affordable.

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Analysts note an economic shift, with Solana's total transaction economic value approaching that of Ethereum, driven by its advantage in transaction fees and maximum mining value (MEV). Solana's fees have reached 50% of Ethereum's in recent days, signaling a potential "turnaround" in the near future.

However, Solana faces challenges, including network congestion and reliability issues. Despite its MEV mining capabilities, concerns about reliability and operational efficiency persist, as evidenced by past outages and a lower Total Locked Value (TVL) compared to Ethereum.

As Solana and Ethereum tackle these challenges and fight for dominance in the emerging market, watching their adaptation and competition is crucial for investors and DeFi enthusiasts alike.