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Solana (SOL) Outshines Ethereum in This Key Metric: Details

Sat, 07/01/2023 - 10:53
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Godfrey Benjamin
Solana trails Ethereum in most key metrics, but it recently surpassed latter in terms of NFT trading volume
Solana (SOL) Outshines Ethereum in This Key Metric: Details
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Many Ethereum killers are seeing impressive growth in key aspects of their ecosystem, and Solana (SOL) is notably not left behind. In a remarkable twist, Solana has taken the center stage as it relates to the overall trading volume of its non-fungible tokens (NFTs) when compared to that of Ethereum.

Per the data embedded in the screenshot shared by Sol Bulletin, Solana's NFT trading volume topped $25.5 million in a 24 hour range while that of Ethereum was pegged at $24.5 million. Notably, this bullish growth milestone is the first time Solana will be beating Ethereum in terms of total NFT trading volume.

Comparing Solana and Ethereum ecosystems

As Layer-1 blockchain protocols, the duo of Ethereum and Solana both have decentralized finance (DeFi) ecosystems. While Solana has a notable functional DeFi ecosystem, it is by no means a match for Ethereum.

Data from DefiLlama pegs the total value locked (TVL) on Ethereum at $26.7 billion, a figure that surpasses more than half of the entire industry TVL. Solana's TVL, on the other hand, is pegged at $265.57 million.

Their respective market capitalization is also a major distinguishing metric, with Ethereum's pegged at $231.17 billion while that of Solana is pegged at a mere $7.38 billion.

Ethereum Merge Activation Has Five Major Effects: Andreessen Horowitz

Ethereum has been tagged as the most liquid blockchain for smart contracts, and while Solana is an able contender, it is still miles apart. While Ethereum dominates in many ways, Solana's developers are arguably more laser focused on introducing unique real world utility into the protocol, which has led to the launch of the Saga Mobile Phone.

Obvious similarity

With the diversity in their ecosystem that makes them different, the duo of Solana and Ethereum are powered via the proof-of-stake (PoS) consensus model. Solana was designed as a PoS protocol from the start, but Ethereum transitioned to this new model from proof of work (PoW) through the Merge as the call for scalability and sustainability takes shape.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.