The Ethereum network's layer-2 blockchains have experienced a remarkable 70% increase in volumes in the past month, addressing the high transaction fees historically associated with Ethereum. In November, Solana held a 35.4% market share of decentralized exchange (DEX) volumes, compared to Ethereum's 45.2%. As for total value locked (TVL), Ethereum's base layer boasts $69.7 billion, significantly overshadowing Solana's $9.2 billion. Ethereum's layer-2 solutions like Base and Arbitrum are each contributing $3 billion to a combined layer-2 TVL of $11.4 billion. Nonetheless, Solana has gained ground by becoming the blockchain with the highest fees, raising questions about Ethereum's valuation. Some analysts highlight the importance of fees for network survival, particularly as Ethereum looks towards improvements in transaction efficiency and dynamic fee structures in 2025. The evolving landscape suggests Solana's growth might not wane, hinting at compelling potential for both ecosystems.

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