- Ethereum is losing market share to Solana, according to a new report from CoinGecko.
- Solana has consistently launched new tokens, accounting for over 80% of newly launched coins in September.
- While Bitcoin has increased in dominance, the coin has been outpaced by other assets, like gold.
According to Coingecko’s Q3 2024 Crypto Industry Report, the global cryptocurrency market ended the quarter with a flat performance, maintaining a market capitalisation of US$2.33T (currently at US$2.4T —AU$3.57T— as per CoinGecko data).
Is this good? Well, it’s higher than last year —and definitely higher than early 2022. Awful times. Anyway, the crypto market has experienced tremendous stress this year, with several ups and downs marked by significant volatility due to global economic events and central bank decisions.
Let’s start with the meat of the article, however: the fact that Ethereum is losing market share against Solana.
Related: Bitcoin ETFs End Three-Day Outflow Streak with Third Largest Inflow
The Fight for DEX Trading
Despite the typical congestion challenges we all know from Ethereum, the blockchain remained the number one chain for DEX trading in 2024, particularly in Q3. However, CoinGecko reveals that its market share is now consistently below 40%.
While Ethereum’s dominance has fallen, Solana gained ground, capturing 22% of the market due to an influx of memecoins (thanks to Pump.fun) and new tokens being launched onto the market. As Crypto News Australia reported, Solana accounted for over 87% of all new tokens launched across tracked networks, producing over 100K new tokens each month.
Interestingly, though, Ethereum Layer 2 networks did see increased activity, with transactions up by 17.2%. Base, a key player, accounted for 42.5% of all L2 network activity, overtaking Arbitrum.
Moving on to Bitcoin, the report reads its “modest growth” was easily surpassed by other asset classes: Gold emerged as the top performer, appreciating by 13.8% amid concerns over a potential economic slowdown and geopolitical instability.
The Japanese Yen also had a strong quarter, gaining 12% following Japan’s rate hike and US rate cuts.
Binance Also Losing Market Share
Binance retained its position as the largest centralised exchange (CEX) but saw its market share slip below 40% for the first time since 2022.
In contrast, Crypto.com became the second-largest trading platform, growing 160.8% quarter-on-quarter. Despite some losses and some wins, spot trading volumes across major CEXs fell by 14.8%, totaling US$3.05T (AU$4.46T).
Related: Crypto.com Sues SEC in Response to Wells Notice, Claims Regulatory Overreach
The Rise of Prediction Markets
Meanwhile, prediction markets experienced explosive growth, with a 565.4% increase in volume, driven largely by the go-to platform for degenerates, Polymarket, which now controls 99% of the market.
Polymarket has become a leading source for political polling, allowing traders to bet on the White House race for this November. Recently, Republican candidate Donald Trump gained an 8% lead over Kamala Harris following Elon Musk’s appearance at a Trump campaign rally on Saturday.
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