Solana Doubles Ethereum's DEX Volume, Surpasses in Staking
Solana's latest price was $146.94, down 0.678% in the last 24 hours. April marked a significant milestone for Solana, as the high-speed blockchain solidified its position as a leader in decentralized exchange (DEX) activity and made substantial progress in staking participation. For the seventh consecutive month, Solana maintained its top position in terms of monthly DEX trading volume, nearly doubling that of Ethereum’s mainnet. This trend is expected to continue, with various DEXs within the Solana ecosystem poised to drive significant trading volume throughout the year.
Solana's dominance extended beyond DEX activities. The blockchain surpassed Ethereum in staking volume, sparking discussions about network security, decentralization, and validator economics. This development raises questions about whether Solana's rapid growth in staking and validator set could indicate a more secure and robust network compared to Ethereum. Solana's rise is particularly notable against the backdrop of Ethereum's overall health, highlighting the shifting dynamics in the blockchain landscape.
Throughout April, decentralized exchanges on Solana, powered by platforms like jupiter, Raydium, and Orca, processed twice the trading volume of Ethereum’s mainnet. This established Solana as the most actively traded blockchain in the DeFi space. This trend has been consistent, with Solana's trading activity on DeFi platforms steadily increasing relative to Ethereum's since the first three quarters of 2023. Notably, Solana has surpassed Ethereum in DeFi trading activities since the start of Q4 2023.
Traders and DeFi users are increasingly drawn to Solana's user experience. While the speed and low fees of Solana are often cited as key advantages, the real differentiator is Solana's performance during times of Ethereum congestion. When gas fees on Ethereum are high, Solana emerges as a decentralized financial superstar, offering a smoother and more efficient trading experience. This shift in user preference is reflected in the growing liquidity, volume, and user base flowing into Solana's DEXs, which in turn enhances its standing in the crypto economy. The structural realignment toward DEXs within the Solana ecosystem indicates a lasting trend rather than a temporary fluctuation.
Solana's staking volume has not only matched but also surpassed that of Ethereum, a development with significant implications for both security and validator incentives. Historically, Ethereum has emphasized decentralization and accessibility in its staking model, with a cap of 32 ETH per validator to ensure a diverse set of node operators. In contrast, Solana requires much greater hardware performance and bandwidth, making it five to ten times more expensive to operate a node compared to Ethereum. This higher barrier to entry has raised concerns about Solana's accessibility and decentralization, as potential validators face significant costs and technical challenges.
Despite these concerns, the increasing amount of capital staked in Solana reflects growing confidence from both institutional and individual high-net-worth players in the network's resilience. As more sol is locked in staking contracts, the economic security underpinning the chain's consensus layer becomes more robust, making the network more resistant to attacks or other forms of malicious behavior. This trend suggests that Solana's model, while demanding, is perceived as a viable path to achieving real decentralization and long-term viability.
The rivalry between Ethereum and Solana has long been centered on the trade-off between decentralization and performance. However, as Solana begins to outperform Ethereum in both trading volumes and staking participation, the terms of this debate are shifting. Proponents of Solana argue that these advancements signal a broader decentralization of blockchain infrastructure. They point to Solana's nearly flawless uptime since late 2023, which has enabled a growing array of DeFi and NFT applications to function smoothly. With a larger and more engaged set of validators, the Solana network is better positioned to achieve real decentralization, a hallmark of a viable long-term blockchain.
In contrast, Ethereum continues its cautious, reasoned evolution, favoring decentralization, modularity, and a secure architectural framework. Supporters of this approach contend that it will serve both Ethereum and its users better in the long run, especially under rising regulatory pressure. Nevertheless, Solana's model seems to be gaining traction in the market. April's numbers indicate that Solana has made significant strides in both trading and staking, reclaiming ground lost to its competitors and establishing itself as a formidable player in the blockchain space.
Alliance DAO's Qiao Wang, a seasoned cryptocurrency analyst and co-founder of Messari, shared statistics on the number of projects applying for funding to his fund in 2022-2025. Ethereum (ETH) has been losing its dominance for 30 months in a row, and the community is surprised by the names of some other top popular blockchains. When it comes to the number of projects asking for funding in alliance DAO, Solana-based and Ethereum-based protocols are competing nose-to-nose in 2025. At the same time, Solana's metric is getting traction and Ethereum might soon lose its supremacy. Solana has been increasing its share since late 2022. Post-FTX collapse, Solana managed to get rid of the associations with SBF-related products. Targeted by massive criticism, Polkadot surprisingly remains in the top 10 by the number of projects applying for funding. Filecoin, Cosmos, BNB Smart Chain, Bitcoin, Avalanche, Sui, and Aptos are also in the elite club. For some metrics, Ethereum remains the dominant blockchain amid all programmable networks. For instance, as per the DefiLlama tracker, Ethereum's protocols are responsible for over 51.2% of global DeFi TVL. Out of $102 billion in equivalent, the oldest smart contracts network still covers over $52 billion. Solana's TVL is sitting at 7.77%. Meanwhile, by the number of active addresses, Ethereum is lagging behind Solana, Tron, and is ready to slip below BNB Smart Chain.
Ask Aime: Solana's dominance in decentralized exchange trading and staking; what impact does this have on long-term investment strategies?