Solana’s Record Trading Volume Sparks Debate Over True Market Impact

• Solana’s (SOL) trading volume spike is attributed to meme coins and low-liquidity pools, limiting its challenge to Ethereum’s position.
• DeFi expert @jpn_memelord suggests Solana’s trading volume lacks sustainable liquidity compared to Ethereum’s stable and larger liquidity pools.
• Despite high trading activity, only one of the top 20 liquidity pools by volume belongs to Solana, keeping Ethereum as the leader.

Solana (SOL) has recently made waves in the blockchain ecosystem by surpassing Ethereum (ETH) and other EVM chains in on-chain trading volume. However, according to recent research by the DeFi analyst @jpn_memelord, the numbers driving Solana’s rise appear to stem primarily from low-liquidity pools and meme coin transactions, signaling a less sustainable growth compared to Ethereum’s dominance in the market.

Volume Driven by Meme Coins and Low-Liquidity Pools

Solana’s trading volume surge over the past month has captured industry attention, but much of this growth is credited to low-liquidity pools and meme coins facilitated by the Pump. fun platform. This platform, known for its no-code meme coin launch service, recently saw a resurgence in activity, fueling Solana’s on-chain activity. Consequently, Solana’s numbers may not reflect long-term or stable growth, relying heavily on trading driven by smaller, high-risk investments.

In a recent report, @jpn_memelord examined Solana’s trading volumes by filtering out newly launched, low-liquidity pools to analyze pools with consistent, substantial trading history. This analysis revealed that among the 20 largest liquidity pools across all blockchains, Solana only accounted for one – the USDC-SOL pool on Whirlpool. In contrast, Ethereum maintained 10 of the top 20 pools, followed by Base with five, and Arbitrum and Binance Smart Chain (BSC) with two each.

Ethereum Remains Dominant in Established Liquidity Pools

The research highlights the contrast between Solana’s trading volume and Ethereum’s steady presence in the top liquidity pools. Notably, Ethereum hosts several high-traffic pools like Uniswap’s USDC-WETH pool, which leads the market in terms of total value locked (TVL). This disparity underscores Ethereum’s robust position, with large, sustainable pools supporting its long-term stability and trading power.

Aerodrome Finance’s USDC-WETH pool recorded an impressive $7.2 billion in monthly trading volume, underscoring Ethereum’s dominance. By comparison, Solana’s top liquidity pools failed to rival Ethereum’s extensive reach, with only the Pump.fun meme coin pool offering any competition in terms of activity.