Ethereum Layer-2 Volumes Increase by 70% – Cover Solana?

The Ethereum network has long been criticized for its high transaction fees, which often exceed $4. However, the widespread development of layer-2 blockchains has created a sustainable solution for decentralized applications (DApps) that require high scalability. This ecosystem has seen a 70% increase in the last 30 days, but can it match Solana's success?

While Solana may surpass Ethereum's base layer momentum, it still falls short when you consider Ethereum's layer-2 blockchain. Solana accounted for 35.4% of decentralized exchange (DEX) volumes in November, compared to 27.2% in October, according to Defillama data. In comparison, Ethereum and its Layer-2 ecosystem accounted for 45.2% of the market share in November, down from 50.1% in October.

In terms of deposits, Ethereum's base layer has a clear advantage with $69.7 billion in total value locked (TVL) compared to Solana's $9.2 billion. In particular, some Ethereum layer-2 solutions such as Base and Arbitrum are already worth $3 billion in TVL each. According to Defilama data, the total Ethereum layer-2 ecosystem reached $11.4 billion TVL.

There is no doubt that Solana has emerged as a major player, taking second place in deposits. However, Ethereum's supremacy remains unchallenged. Additionally, Base, Ethereum's layer-2 solution, established and regulated by Coinbase exchange, offers promising prospects, especially in the memecoin sector.

Memecoins are key drivers of Solana's adoption and growth, with several tokens surpassing $1 billion in market capitalization. Pump.fun has seen a significant increase in trading activity on platforms like Radium and Orca, raising $24.6 billion in volume over the past seven days.

Solana outperforms Ethereum in fees.

Some analysts argue that volumes and total value locked (TVL) are just for leverage. They emphasize that fee-taking is critical to network survival, as stakeholders must be rewarded for their authentication services and must create incentives for long-term retention. The primary value driver for cryptocurrencies on smart contract blockchains is payment for processing services, which supports their decentralized nature.

Solana recently surpassed Ethereum to become the top-grossing blockchain by fees, prompting investors to question whether (ETH) is overvalued at $436 billion in market capitalization, while (SOL) is at $116 billion — a 73% decline. However, this simple analysis reveals Solana's high inflation rate, currently at 5.3%.

In the year Looking ahead to 2025, Ethereum is considering further adjustments to its payment structure, including dynamic payment changes based on network usage and how bundle-2 solutions interact with the base layer. These measures aim to improve the efficiency of decentralized applications (DApps), reduce transaction costs and ultimately lead to higher network fees.

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Currently, Ethereum layer-2 solutions struggle to compete with Solana, which provides a more seamless experience for new entrants and token launches. However, Base is slowly gaining traction, with continued influence from the Coinbase exchange benefiting newcomers to the space.

For now, Solana's growth does not seem to be hampered, paving the way for higher total value locked (TVL) and volumes, which will positively impact SOL's price progress.

This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.