SOL Gearing Up to Outperform BTC as Solana’s DEXs Surpass $41B in Record Trading Volume: Godbole

The bullish outlook for Solana (SOL) is being reinforced by strong technical signals and record trading volumes on Solana-based decentralized exchanges (DEXs), making it an attractive alternative to Bitcoin (BTC) for investors.

Price Breakout Indicates Momentum Shift

The SOL/BTC trading pair saw a significant breakout last week, gaining more than 1% as it moved out of a period of price consolidation, commonly known as triangular consolidation in technical analysis. This breakout suggests that the bulls are gaining control after months of indecision between buyers and sellers, making it likely that the price will continue trending upwards.

The Moving Average Convergence/Divergence (MACD) histogram, a widely used indicator for trend analysis, has crossed above zero, signaling a shift towards a stronger bullish momentum for SOL.

Solid Fundamentals Support the Bullish Trend

While there’s ongoing debate over whether Solana can eventually overtake Ethereum as the dominant smart contract blockchain, one thing is certain: Solana is emerging as a key player in the retail investor market, especially in the trading of memecoins. This is reflected in the significant increase in trading volumes, adding further strength to the positive outlook for SOL.

Solana-based DEXs hit a new milestone, with $41.6 billion in trading volume over the seven-day period ending November 17, more than double the volume of the previous week. This marks a new record for Solana’s decentralized exchanges, according to Artemis data.

When compared to other blockchain networks, Solana’s DEX volume surpassed the combined total of Ethereum, Base, and Binance Smart Chain (BSC), which recorded $37.9 billion in volume. Ethereum alone accounted for $14.3 billion of that figure, showcasing Solana’s growing dominance.

Revenue Generation Outpacing Rivals

Solana is also proving its competitiveness when it comes to fee revenue. Despite Ethereum being known for its higher transaction costs, Solana’s Raydium DEX generated $72.83 million in fees over the past week, which is 8% higher than Ethereum’s $67 million. Bitcoin, by comparison, generated only $15 million in fees during the same period, further highlighting Solana’s growing relevance in the decentralized finance space.

With technical indicators supporting a positive price trajectory, rising trading volumes, and robust fee revenue generation, Solana continues to solidify its position as a key blockchain network. Investors are now more inclined to consider SOL as a strong contender in the crypto ecosystem.