Solana has made headlines by surpassing Ethereum in decentralized exchange (DEX) trading volumes, securing the second spot in the global DEX market. Over the past 30 days, Solana’s DEX activity reached an impressive $64,1 billion, edging out Ethereum’s $61,4 billion. However, this surge comes with a caveat: overall network activity on Solana is still 91% below the peak levels seen in January, highlighting a significant drop-off after the explosive start to 2025 .
Key Drivers Behind Solana’s DEX Growth
The recent boost in Solana’s DEX market share is largely attributed to platforms like Raydium, Pump.fun, and Orca, which together contributed over $47 billion in trading volume. Despite this, the broader ecosystem is facing headwinds. The memecoin sector, once a major source of excitement and volume, has cooled off sharply. In the last 16 days, leading Solana-based memecoins such as Giga, Popcat, Fartcoin, PNUT, Bonk, and WIF have all seen losses ranging from 25% to 42%, dampening overall sentiment and activity .
Market Sentiment and Competitive Pressures
While Solana’s DEX numbers are strong, investor confidence in SOL’s price trajectory remains muted. Since failing to reclaim the $168 mark on June 12, SOL has dropped 15% and is currently trading around $143. This decline is partly due to reduced network activity and waning demand for memecoins. Additionally, the rise of Hyperliquid—a new leader in perpetual futures trading—has shifted attention away from Solana and Ethereum, raising concerns that major Solana-based projects might consider launching their own independent blockchains, further fragmenting the ecosystem .
Derivatives Data and Price Outlook
Derivatives markets reflect this cautious mood. The annualized funding rate for SOL perpetual futures has not shown sustained optimism, indicating a lack of appetite for leveraged long positions. In neutral markets, funding rates typically range from 5% to 12% for long positions, but recent data shows no such bullishness for SOL .
What Could Turn the Tide for SOL?
Despite these challenges, there are potential catalysts on the horizon. The most significant is the possible approval of a Solana spot ETF by the US Securities and Exchange Commission, with a decision expected in October. Such a move could inject fresh optimism and capital into the SOL market. In the meantime, Solana’s technical strengths—such as low fees, high scalability, and a robust base layer that supports native asset collateralization—continue to attract developers and users. These factors could help SOL recover to the $180 level even before any ETF decision is made .
The Bottom Line
Solana’s recent DEX volume surge is a testament to its growing influence in the DeFi space, but the disconnect between network activity and SOL’s price highlights the complex dynamics at play. As the blockchain industry evolves, Solana’s ability to maintain its momentum will depend on both market sentiment and its capacity to innovate amid rising competition.
