Decentralized exchanges (DEXs) on Solana have achieved remarkable trading volumes, significantly outperforming those on other platforms like Ethereum and Binance Smart Chain (BSC). This growth has been greatly attributed to the popularity of memecoins, which have found a place in the crypto market.

However, for Solana DEXs to maintain this growth, they need to ensure they can adapt to shifting market dynamics and trends. This involves creating deeper and more liquid markets for more stable assets such as Bitcoin, rather than solely relying on speculative trading.

The Ascendance of Solana DEXs

According to OKX’s report titled The State of DEXs 2025, Solana DEXs had nearly 90% of the DEX market share by the end of December 2024, marking a significant comeback from a perceived downturn during the last bear market. While this dominance has fluctuated, it remains notably strong. Fast transactions and low fees have played a crucial role in this progression.

Quote: “Solana is drinking the Ethereum milkshake.” (Translation: Solana is outperforming Ethereum)

In fact, Solana’s market share did not fall below 50% in January 2025, often surpassing Ethereum and Base.

However, by August, trading volumes for Ethereum DEXs began to surpass those on Solana due to revived institutional interest. By early September, trading volumes on Solana had dropped significantly, highlighting the impact of speculative trading and scams on its credibility.

Key Challenges

Solana DEXs face two main challenges: overdependence on speculative assets and inadequate liquidity depth. The volatility of these assets translates to erratic trading volumes, making sustained growth challenging.

A recent report revealed Solana’s liquidity pools are often insufficient compared to other blockchains, which can negatively affect trading.

Enhancing Liquidity

To foster a healthier marketplace, Solana DEXs should prioritize stronger assets like Bitcoin. Bitcoin’s DeFi sector is proving lucrative, with funding surpassing $175 million in H1 2025.

Building strong liquidity around Bitcoin and stablecoins is essential, enabling Solana to create a resilient DeFi ecosystem that can weather market fluctuations. This strategic focus is crucial not just for immediate success, but for ensuring long-term sustainability in a volatile landscape.