Decentralized exchanges (DEXs) on Solana have experienced a dip in trading volume in recent weeks, marking the fifth consecutive week of decline. According to data from DeFiLlama, Solana DEXs recorded a total of approximately $20.2 billion in the week ending February 16. This reflects a broader market trend, with similar volume reductions observed across other blockchains such as BNB Chain, Ethereum, Sui, and Polygon.
In the week ending February 10, 2025, Solana’s on-chain transaction volumes slipped by 28%, tallying up to $31.8 billion. The weekly trading volume has fallen by 24.35% in the subsequent week, totaling $28.893 billion.
Among Solana’s DEXs, Meteora reported the most activity with a volume of $875.8 million. Raydium followed closely at $836.37 million, and then Orca at $322.32 million. The combined trading volume for the top DEXs amounted to $155.172 billion across the recorded period.
Despite the overall decline, there are indications of robust liquidity. For instance, Meteora’s weekly Total Value Locked (TVL) was $8.024 billion, accompanied by a volume/TVL ratio of 0.84. Raydium, meanwhile, had a higher weekly TVL but a lower volume/TVL ratio of 0.5.
Interestingly, while Solana DEXs have witnessed a volume decline, those on Binance Smart Chain (BSC) have seen an uptick. As of now, BSC has the highest trading volume among decentralized exchanges, marking a significant shift from its third-place position in March 2024.
One factor contributing to Solana’s DEX volume decline could be the cooling of the memecoin trading frenzy that has characterized the Solana ecosystem since the start of the bull run. Traders may be weary from the continuous cycle of pump-and-dump schemes, rugpulls, and insider trading associated with these tokens.
Furthermore, the return of memes to the BSC ecosystem, driven in part by a meme introduced by Binance’s former CEO, Changpeng Zhao (CZ), appears to have redirected trading traffic away from Solana.
Despite the decline, Solana remains a key player in the DEX market. Although the value of the SOL token has significantly declined by over 50% in the past year, many analysts remain optimistic about its long-term potential.
Mert Mumtaz, the CEO of Helius Labs, is one such believer in Solana’s supremacy. Mumtaz defended the Solana chain amidst criticism following the recent Libra memecoin debacle, arguing that the chain itself is not responsible for the scams that occur on it. He maintains that the technology works, which is why memes have been so successful on the chain, and that should be the main focus.
