Ethereum Layer-2 Networks See 70% Rise in Volumes, Dominating Solana in TVL

Ethereum scaling solutions, popularly known as layer-2 networks, have seen a 70% rise in volumes this month, according to data from DefiLlama.

Ethereum layer-2 volumes have surged 70% this month, with DEXs on these networks processing 45% of total DEX volume since Nov. 1. Solana has handled 35% of the DEX volume.

Ethereum Mainnet Dominates Solana in TVL

Regarding deposits, the Ethereum mainnet has a Total Value Locked (TVL) of $69.6 billion, far higher than Solana's $9.3 billion. Interestingly, two layer-2 networks, Arbitrum and the Base Chain, have seen their TVL rise to $3 billion each. Data from DefiLlama shows that all the scaling solutions have a combined TVL of $11.4 billion.

While the Solana network has emerged as a strong competitor, particularly due to the growth of its meme coin ecosystem, Ethereum's dominance remains unchallenged as layer-2 networks continue to be adopted. For instance, the Base Chain, created by Coinbase, has become a top destination for token creators who find the Solana meme coin space to be crowded.

Solana Collects More Fees Than Ethereum

As mentioned, meme coins are largely driving Solana's growth. The introduction of PumpFun, a user-friendly tool that facilitates the creation of tokens, has increased the network's volume by billions. The surge in trading activity on Solana has enabled the blockchain to collect $195.8 million in fees over the past 30 days. In comparison, 30-day fees on Ethereum stand at $184.35 million.

Some crypto analysts have pointed out that the rising fees on Solana could be a key driver of SOL's rally in the coming weeks, arguing that high payments to validators typically pump a blockchain's native token.

Moreover, they believe that SOL, currently trading at $241 with a market cap of $116 billion, is undervalued, while Ethereum, priced at $3,661 with a market cap of $435 billion, is overvalued. With that said, these analysts are bullish on SOL, anticipating a 72% price rise in the near future to match Ethereum's market cap.

Ethereum Foundation Announces Its 2025 Plans

On the other hand, the Ethereum Foundation plans to introduce new elements on the network in an attempt to drive the fees higher. The organization has stated that it will launch upgrades in 2025 to streamline how scaling solutions interact with the mainnet. These updates are expected to enhance the efficiency of DEXs and other decentralized apps, ultimately boosting onchain activity.

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