The team at CoinGecko has examined the market share of blockchains in terms of their trading volume in a new report.
CoinGecko has shared insights on which blockchain has the most trading volume in an extensive research study.
As stated in the research report, Ethereum was “the blockchain with the most trading volume, with 37.1% of all trading volume in March 2024.”
Its trading volume hit $69.67 billion “in March 2024, representing a 92.4% month-on-month (MoM) climb, having recorded $36.22 billion in February 2024.”
Solana was the second-largest blockchain “by trading volume, with a 21.3% market share in March 2024. It climbed an impressive 244.8% MoM, with trading volume hitting $40.05 billion in March, up from $11.61 billion in February.”
BNB Chain (BSC) was the third largest, “accounting for 15.1% of all decentralized exchanges (DEX) trading volume. BSC had $28.47 billion in trading volume in March 2024, up 161.1% from February, when it had $10.90 billion.”
The remaining top 10 blockchains “hold less than 10% market share each, with Arbitrum at 8.4%, THORChain at 5.9%, Polygon at 4.7%, Avalanche at 3.1%, Base at 2.4%, Optimism at 1.4%, and zkSync at 0.6%.”
Ethereum, maintained its lead in DEX trading volume, “with a 33.4% market share in 2024 Q1.”
It had $144.20 billion in trades throughout the quarter, “up from $98.20 billion in 2023 Q4. Nearly half of Ethereum’s Q1 volume came in March, where it recorded $69.67 billion in trading volume.”
However, Ethereum’s dominance is “at an all-time low, having fallen below 40% in Q1.”
While Ethereum’s trading volume increased “by 46.8% in Q1, Solana and Arbitrum continued to chip away at Ethereum’s market share.”
In 2023 Q4, Ethereum’s market share “stood at 46.8%. In January and February 2024, Arbitrum briefly overtook Ethereum’s dominance.”
Ethereum had “a 31.2% and 30.1% market share in January and March, while Arbitrum stood at 39.1% and 39.7% during the same period.”
Solana ended 2024 Q1 accounting “for 14.4% of all DEX trading volume, for a total of $62.31 billion. Its quarter-on-quarter (QoQ) growth was 242.7% from 2023 Q4, when its volume stood at $18.18 billion. Meanwhile, its market share in the same quarter was 8.7%, ranking fourth, behind BSC.”
Trading volume on Solana greatly “benefited from the doubling in price of Solana (SOL), large airdrops from Jito (JTO) and Jupiter (JUP), and a surge in memecoins on the network. Book of Memes (BOME) was launched in March, and managed to hit a $1 billion market cap within two days, as well as getting listed on prominent exchanges such as Binance and Bybit.”
DEX trading activity flourished on Arbitrum “at the start of 2024, accounting for 39.1% ($48.07 billion) and 39.7% ($47.78 billion) of all DEX trading volume in January and February. During the same period, it exceeded Ethereum’s trading volume.”
This was largely due “to its STIP incentive program aimed at bolstering activity on the network. All major DEXes on Arbitrum, such as Uniswap, PancakeSwap, Trader Joe, and Camelot saw heightened activity. Unfortunately, activity tapered off almost immediately after incentives ended, resulting in a much more subdued March, where it had a 8.4% ($15.79 billion) market share.”
Base was the best performer in 2024 Q1, “chalking an impressive 434.8% QoQ growth. It ended the quarter with a 1.3% market share, up from 0.5% in 2023 Q4. Meanwhile, its trading volume was $5.75 billion in Q1 versus $1.08 billion in Q4.”
The majority of trades on Base were “done in March, where it had $4.47 billion in volume, accounting for 77.8% of all trades done on the chain in Q1.”
This can be attributed to meme season “picking up steam on the network, with hype surrounding the Degen (DEGEN) token.”
Methodology
The study examined the top 10 blockchains “by decentralized exchange (DEX) trading volume, using CoinGecko data from October 1, 2023 to March 31, 2024.”
The top 10 blockchains “are: Ethereum, Solana, BSC, Arbitrum, THORChain, Polygon, Avalanche, Base, Optimism, and zkSync.”
