Key signs Solana might be outperforming Ethereum

• Solana surpassed Ethereum in terms of DEX volumes.
• Price of SOL declined materially over the last few days.

Solana’s [SOL] performance since the beginning of the year has been extremely positive. Due to this momentum, Solana managed to outperform Ethereum[ETH] in terms of DEX (Decentralized Exchange) volumes.

Solana DEX volumes on the rise

This DEX volume refers to the total value of cryptocurrency actually transferred between wallets on the Solana network. These transfers happen through swaps on DEXs, which utilize liquidity pools on the network and are all verified by Solana’s validators.

This DEX volume metric is considered a crucial indicator of a blockchain network’s fundamental value. It reflects actual usage within the network’s ecosystem, as opposed to just speculation on the price of the token.

By this measure, Solana’s strong DEX volume suggests it is currently outperforming Ethereum in terms of real-world use. This could be a sign of growing adoption and potential for future growth for Solana.

Source: X

Even though DEX volumes for Solana were on the rise, the overall activity on the network had declined significantly by 10.7% over the past month.

Moreover, the number of code commits on the network had also fallen by 20% signaling a decline in development activity.

Ethereum, on the other hand, showed growth on both these fronts. Overall active users on the network grew by 2.2% over the past month and the number of code commits surged by 10% during the same period.

Source: token terminal

At press time, SOL was trading at $126.47 and its price had declined by 5.21% in the last 24 hours, due to the recent market correction. Since the 21st of May, the price of SOL has declined materially.

During this period, the price of SOL exhibited multiple lower lows and lower highs, indicative of a bearish trend.

The RSI (Relative Strength Index) for SOL also fell materially over the last few days. It was below the 40 mark, indicating that SOL may be slightly oversold at the time of writing and could see a reversal soon.

Read Ethereum’s [ETH] Price Prediction 2024-25

The Awesome Oscillator (AO) for SOL had declined indicating weakening buying pressure and potentially increasing selling pressure.

However, the volume at which SOL was trading had surged by a significant 212% in the last 24 hours.

Source: Trading View