SOL Looks Set to Outperform BTC as Solana-Based DEXs Register Record $41B in Trading Volume: Godbole

• SOL/BTC’s prolonged triangular consolidation has ended with a bullish breakout.
• Solana-based decentralized exchanges register record weekly trading volume that’s bigger than the combined activity in Ethereum, Base and BSC.

Unmute# Uptober Forming Amid Rising Stablecoin Liquidity and Bitcoin Transactions

• 01:01Bitcoin Breaks $64K While Gold Soars
• 00:56ETH/BTC Ratio Slid to Lowest Since April 2021
• 00:57Is Bitcoin Losing Its Bullish Momentum? It’s said that the best trades occur when the tape, or the direction of the price trend, aligns perfectly with the fundamentals. The solana-bitcoin (SOL/BTC) ratio appears to be one of those rare cases, showcasing a solid bullish price pattern supported by equally impressive activity on the Solana blockchain.

Price Breakout

The SOL/BTC ratio rose over 1% last week, moving out of a narrowing price range, referred to as triangular consolidation in technical analysis.

The breakout indicates that the bulls are finally willing to lead the price action, having been in a stalemate with the bears for eight months. In other words, a sustained uptrend looks likely.

SOL/BTC’s weekly candlesticks chart with MACD. (TradingView/CoinDesk) (TradingView/CoinDesk)The Moving average convergence/divergence (MACD) histogram, a indicator used to identify trend changes and strength, has crossed above zero, indicating a renewed bullish shift in momentum.

Fundamentals validate breakout

Whether Solana will ultimately replace Ethereum as the top smart contract blockchain remains a hot topic of debate. However, one thing is clear: Solana has established itself as the go-to-place for retail investors to trade memecoins, as evidenced by the surge in trading volumes which supports the bullish outlook for SOL.

Solana-based decentralized exchanges (DEX) have registered cumulative trading volume of $41.6 billion in the seven days to Nov, 17, more than double the preceding week and the highest on record, according to data source Artemis.

Solana weekly DEX trading volumes . (Artemis) (Artemis)The Solana blockchain alone did more volume than Ethereum, Base and BSC’s cumulative DEX activity of $37.9 billion, of which Ethereum accounted for $14.3 billion while the rest did over $11 billion each.

Furthermore, Solana continues to compete the rivals in terms of free revenue despite known for being relatively cheaper than Ethereum. For instance, the Solana-based decentralized exchange Raydium has generated $72.83 million in fees in seven days – that’s 8% more than Ethereum’s $67 million, according to DefiLlama. BTC, meanwhile, has generated a fee revenue of around $15 million in seven days.

Defillama rankings by fees and revenue. (Defillama) (Defillama)Edited by Parikshit Mishra.