How Solana won DeFi’s throughput race
The post How Solana won DeFi’s throughput race appeared on BitcoinEthereumNews.com. Solana (SOL) processes approximately 70 million transactions per day and recorded over $143 billion in monthly DEX volume as of Oct. 30, according to DefiLlama. The network operates with 1,295 consensus validators across 40 countries, and a Nakamoto Coefficient of 20, according to the Foundation’s June 2025 Network Health Report. Production throughput runs at approximately 1,100 transactions per second. The throughput enhancements followed a five-hour outage in February 2024. The event prompted the Solana ecosystem to introduce measures such as stake-weighted Quality of Service (QoS), tests with the Firedancer client in hybrid form, and adjusted validator economics through priority fee routing. Transaction volume and execution model DeFiLlama data shows Solana’s spot monthly DEX volume at roughly $143 billion as of Oct. 30. Ethereum’s volume in the same period reached nearly $138 billion. However, Ethereum’s base layer processes fewer than 1.2 million transactions per day, while Solana processes over 70 million. Ethereum routes most DeFi activity to layer-2 rollups that batch transactions before settling on the base layer. Solana executes all transactions on a single layer. Jake Kennis, senior research analyst at Nansen, attributes Solana’s activity to infrastructure and market catalysts. In a note, he stated: “Solana’s runtime did the hard work first: Sealevel’s parallel execution, sub-second blocks, stake-weighted QoS over QUIC kept latency low and fees stable under load. That design avoided rollup-style fragmentation and delivered ‘one venue, one wallet, one mempool’ trading.” Market catalysts included Jito airdrops in 2023, Jupiter airdrops in 2024, memecoin activity via Pump.fun, and wallet integrations from Phantom, Jupiter, and Uniswap. Fee structure and congestion response Solana charges a fixed base fee of 0.000005 SOL per signature plus optional priority fees. During the early 2024 memecoin surge, transactions failed despite users paying priority fees. Version 1.18 implemented stake-weighted Quality of Service, allocating block space proportional…
BitcoinEthereumNews2025/11/01 02:05