Solana (SOL) was trading at 97% discount to the market capitalization of Ethereum’s ether (ETH) in January 2023 — a clear market dislocation that has closed significantly over the last two years.
Today, the discount has shrunk to 70%.
However, Solana is starting to challenge Ethereum in terms of on-chain activity and key measures of network usage.
Which raises the question: Is the market still dislocated?
In this short piece, we explore this key question with relative analysis across four key data points. Let’s dive in.
1. Network Fees
Data: Artemis, The DeFi Report, Gas Fees Only (does not include MEV). Please note that we’ve included the following L2s in the comps data: Arbitrum, Base, Optimism, Blast, Celo, Linea, Mantle, Scroll, Starknet, zkSync, Immutable, and Manta Pacific.
Layer 2s create new demand for block space on the Ethereum layer 1 and increase the network effects of ETH the asset. Therefore, we include them in our comparatrive analysis for SOL.
In the second quarter, Solana did $151 million in fees, which is 27% of Ethereum plus its top layer 2s.
Fast forward to the last 90 days and the ratio has jumped to 49%.
2. DEX Volu
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Author: Michael Nadeau
