The trading volume of Ethereum's layer 2 increased by 70% – Will it overshadow Solana?

The 70% increase in trading volume on Ethereum's layer 2 solutions has recently created a notable trend in the blockchain space; however, whether it will overshadow Solana remains an open question. Ethereum and its layer 2 solutions currently account for 45.2% of the decentralized exchange (DEX) market share, while Solana has risen to 35.4% in November, indicating that Solana still maintains a competitive position. In terms of total value locked (TVL), Ethereum with $69.7 billion still holds a significant advantage over Solana's $9.2 billion.

An important factor is transaction fees. Solana has surpassed Ethereum in fee revenue, which could attract more users and developers to its platform. Meanwhile, Ethereum is considering fee reforms to improve its competitiveness. The development of Ethereum is also supported by layer 2 solutions; however, an over-reliance on them could raise concerns about Ethereum's long-term revenue.

Overall, while layer 2 trading volume is growing strongly, Solana remains an important player with its own advantages in fees and speed, but the development of Ethereum and its layer 2 solutions is also creating a fierce competitive landscape.