Introduction
Followin' the continuous development of the crypto market, the Solana ecosystem is showing strong growth momentum, especially in the decentralized exchange (DEX) field, where Raydium has performed particularly well. Accordin' to the latest report from Messari, Raydium has surpassed Uniswap for two consecutive months, with a Bit of $124.6 Billion in November, 30% higher than Uniswap. Behind this success, apart from the booming meme coin market, it is also closely related to the technical innovation of the Raydium platform and the overall maturity of the Solana ecosystem.
Raydium Breaks Records, Meme Coins Boost Bit Volume
Messari's data shows that Raydium not only set a new Bit volume record in November, but also became the largest DEX by Bit volume for two consecutive months. In November, Raydium's Bit volume reached $124.6 Billion, accounting for more than 60% of the Solana DEX Bit volume, demonstratin' the strong appeal of the Solana ecosystem.
It's worth notin' that the rise of meme coins is a key factor in the surge in Raydium's Bit volume, with these meme coins accountin' for 65% of Raydium's Bit volume in November.
Furthermore, Raydium has further improved its liquidity management and portfolio functionalities through the upgrade to Version 3, while also leveragin' the high speed and low cost advantages of the Solana network by integratin' price oracles and Token-2022 support, providin' users with a more efficient tradin' experience. These technical improvements have undoubtedly consolidated Raydium's leadin' position in the DeFi tradin' market.
Solana Surpasses Ethereum, Layer 2 Intensifies Competition
Solana's strong performance is not only reflected in Raydium's Bit volume, but also in the overall Bit volume of the Solana network. In July, October, and November 2024, Solana's Bit volume approached $130 Billion, while Ethereum's Bit volume was only $70.6 Billion. Particularly in the reports from DeFiLlama and Artemis, Solana was found to have attracted a large influx of funds, while Ethereum faced a net outflow of funds - this phenomenon highlights the rise of Solana as a competitor to Ethereum.
Furthermore, the rapid development of Ethereum's Layer 2 solution Base has also put Ethereum under greater competitive pressure. Base's Bit volume growth has been rapid and is gradually approachin' Ethereum, further exacerbatin' Ethereum's internal and external challenges. The potential launch of Ethereum Layer 2 solution (Unichain) by Uniswap may also intensify Ethereum's market competition, posing higher risks of capital outflow for Ethereum validators.
Challenges Facin' Ethereum's Future
In the competition with Ethereum, there is not only external pressure from public chains like Solana, but also the challenge from Ethereum's own Layer 2 solutions. Particularly, Uniswap's market share on Ethereum is as high as 78.58%. If the issue of capital outflow from Ethereum cannot be effectively resolved, it may result in the loss of $400 million to $500 million in revenue per year, which will directly impact Ethereum's deflationary monetary mechanism and raise doubts about the robustness of its economic model.
Nevertheless, Bitwise's 2025 outlook report remains optimistic about Ethereum's future, anticipatin' that with the rapid development of Layer 2 solutions like Base and Starknet, Ethereum may see new growth drivers. Additionally, the large-scale growth of stablecoins and tokenized projects on the Ethereum network also bodes well for its future prospects.
Bitwise Forecast: Crypto Trio to Hit New Highs
In Bitwise's 2025 market outlook, Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) are referred to as the "crypto trio", and are expected to continue their upward trend, reachin' new historical highs. In 2024, these three crypto assets outperformed all major asset classes, with Bitcoin up 141.72%, Ethereum up 75.77%, and Solana up 127.71%.
Latest Price Movements of Bitcoin BTC, Ethereum ETH, Solana (SOL), and Raydium (RAY)
Bitwise has set a target price of $200,000 for Bitcoin, expectin' that the influx of ETF funds will continue to drive Bitcoin's price higher. Ethereum is predicted to reach $7,000, mainly benefitin' from the development of Layer 2 expansion technologies and the growth of projects on Ethereum. Solana's future performance is also worth notin', with Bitwise believin' that Solana's target price may reach $750, especially as "serious" projects join the ecosystem, further consolidatin' Solana's market position.
Short-term Market Trends and Investment Strategies
In the short term, the market trend may still be influenced by Bitcoin. Bitcoin's strong performance in 2024 is expected to continue attractin' the attention of institutional investors, potentially seein' more buy-side pressure from corporates and governments. As a major competitor to Ethereum, Solana's market performance is also worth investors' attention. Due to the meme coin frenzy, Solana's short-term trend may continue to maintain an upward momentum, especially as new projects enter the Solana ecosystem.
For investors, in the short term, they can focus on the price fluctuations of Bitcoin and Solana, and take advantage of the pullback opportunities to make purchases, especially during market rebounds. In the long run, with the further development of Layer 2 technologies and the crypto ecosystem, Bitcoin, Ethereum, and Solana all have great upside potential.
Conclusion
In 2024, the strong rise of Solana, particularly the breakthrough of Raydium in the decentralized tradin' market, marks the maturity of the Solana ecosystem. Solana's Bit volume has gradually surpassed Ethereum, and with the influx of funds into Solana and projects like Base, the market landscape is undergoing dramatic changes. Although Ethereum faces external competition and challenges from its own Layer 2 solutions, it still has a strong market appeal. Bitwise predicts that Bitcoin, Ethereum, and Solana will reach new historical highs in the future, and investors should closely monitor the performance of these crypto assets and their future development opportunities.
