In January 2023, Solana was trading at a staggering 97% discount to Ethereum's market capitalization, but that gap has reduced to 70% over the past two years. Solana's on-chain activity and network usage metrics are starting to rival those of Ethereum, prompting the question of whether the market remains dislocated. Recent data shows that Solana achieved $151 million in fees in Q2, amounting to 27% of Ethereum’s figures, which has now increased to 49%. In terms of decentralized exchange trading volume, Solana moved $108 billion in Q2, equivalent to 36% of Ethereum’s activity, which has risen to 57% recently. However, in stablecoin volumes, Solana recorded a decrease in its share, from 190% of Ethereum's volume down to 30%, primarily attributed to changes in trading dynamics. Furthermore, Solana’s Total Value Locked (TVL) has improved from 6.3% to 12% of Ethereum and its Layer 2 counterparts. These data points suggest a potential for re-evaluation of Solana's market valuation in relation to Ethereum, although qualitative differences and future catalysts should also be considered.

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