Solana and its native asset, SOL, have experienced significant growth in recent months, notably surpassing Polygon in decentralized exchange (DEX) trading volume. This achievement reflects Solana’s increasing prominence in the blockchain space and growing interest from institutional investors.
Solana Overtakes Polygon in DEX Volume
On-chain data analysis reveals that the Solana network has surpassed Polygon, a layer-2 Ethereum-based scalability blockchain, in daily DEX trading volume. Solana currently boasts a daily DEX trading volume of $240.47 million, outpacing Polygon, which stands at $137.49 million.
Just a week prior, Polygon had a substantial daily DEX trading volume of $247.45 million, while Solana had $135.37 million. However, within a short span of nine days, Solana has managed to overtake Polygon, marking a remarkable shift in the landscape.
SOL’s Institutional Appeal
Solana and its native asset, SOL, have garnered substantial attention from institutional investors. In addition, SOL has become a favored altcoin among institutional players, with $74 million in institutional investment inflows year-to-date, ranking second only to Bitcoin.
Institutional investors injected $15.5 million into the cryptocurrency in the previous week, representing 47% of its total assets under management (AUM). Additionally, Solana-based products experienced a significant AUM increase in October, surging by 74.1% to $140 million.
Remarkable Growth Despite Challenges
Despite challenges such as its association with the bankrupt crypto exchange FTX and its founder Sam Bankman-Fried, SOL has shown a bullish performance for most of the year. Moreover, FTX’s collapse in November 2022 briefly affected SOL’s value and network stability.
Nevertheless, SOL has experienced an 80% monthly price increase and a 40% annual surge, outpacing leading cryptocurrencies like Bitcoin, Ethereum, and Ripple.
Factors Driving Solana’s Growth
Several factors contribute to Solana’s latest rally and growth. The launch of Firedancer, a new validator client on the network, aims to enhance the client ecosystem and improve the network’s resilience, speed, and reliability.
Furthermore, the ongoing Solana conference, known as Breakpoint 2023, hosted in Amsterdam from October 30 to November 3, has also played a significant role in driving SOL’s upward momentum.
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