Solana News Today: Solana's DEX Surge Powered by Low Fees, But Long-Term Adoption Remains Uncertain

Generated by AI AgentCoin World
Sunday, Oct 5, 2025 4:39 am ET1min read
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Aime RobotAime Summary

- Solana's DEX volume surpassed Ethereum for two consecutive quarters in 2025, reaching $139.6B and $117.1B in Q2/Q3 versus Ethereum's $82.7B and $105.3B.

- Despite Ethereum briefly overtaking Solana in August 2025, Solana's $0.043 average fee vs. Ethereum's $0.43 drove sustained high-frequency trading growth.

- Technical advantages like 65,000 TPS throughput and low costs attracted platforms like Jupiter and institutional investors, but 96.6% of Solana DEX addresses churn daily.

- Centralization risks (70% of validators controlled by 100 entities) and competition from PancakeSwap/Uniswap highlight uncertain long-term adoption despite current volume leadership.

Solana's decentralized exchange (DEX) trading volume has outpaced

Ethereum
for two consecutive quarters in 2025, according to data from DefiLlama and Messari. In Q2 (April–June), Solana's DEX volume reached $139.6 billion, compared to Ethereum's $82.7 billion. This lead was maintained in Q3 (July–September), with
Solana
processing $117.1 billion in volume versus Ethereum's $105.3 billionSolana vs. Ethereum DEX Volume in 2025 - Messari[1]. The cumulative DEX volume for Solana in 2025 hit $1.21 trillion, exceeding Ethereum's $400 billion and
BNB
Chain's $761 billion combinedSolana DEX Volume Hits $1.21 Trillion, Tops Ethereum & BNB[3].

Despite these gains, Solana's dominance is not uninterrupted. While the network led in Q2 and Q3, Ethereum's volume exceeded Solana's in August 2025, breaking any potential 10-month consecutive outperformance streakSolana vs. Ethereum DEX Volume in 2025 - Messari[1]. Over the past year, both networks have alternated leadership, with Ethereum reclaiming its position in certain months. However, Solana's average transaction fees-$0.043 per trade compared to Ethereum's $0.43-have driven high-frequency trading activity, contributing to its overall volumeSolana beats Ethereum in DEX volume, but SOL traders aren’t interested in SOL[4].

The surge in Solana's DEX volume is attributed to its technical advantages, including high throughput (65,000 transactions per second) and low costs, which attract developers and traders. Platforms like

Jupiter
,
Orca
, and
Raydium
have expanded their ecosystems on Solana, offering liquidity pools and cross-chain toolsSolana DEX Volume Hits $1.21 Trillion, Tops Ethereum & BNB[3]. Institutional interest has also grown, with funds and market makers leveraging the network's speed and affordability for large trades and liquidity strategiesSolana DEX Volume Hits $1.21 Trillion, Tops Ethereum & BNB[3].

However, the network faces challenges. On-chain data reveals that 96.6% of Solana's DEX addresses churn within a day, indicating high short-term activity but weak long-term adoption. While daily volume reached $4.013 billion in 2025, the average address lifespan remains under 24 hours, raising questions about the sustainability of the growthSolana beats Ethereum in DEX volume, but SOL traders aren’t interested in SOL[4]. Analysts note that Solana's validator network, with 70% controlled by 100 entities, introduces centralization risks that could deter institutional investors seeking trustless environmentsSolana DEX Volume Hits $1.21 Trillion, Tops Ethereum & BNB[3].

The competitive landscape remains dynamic.

PancakeSwap
V3 and
Uniswap
V3 continue to dominate DEX trading volume, with PancakeSwap leading in 2025Solana vs. Ethereum DEX Volume in 2025 - Messari[1]. Meanwhile, BNB Chain's consistent growth and Binance's ecosystem incentives have positioned it as a key rival. Despite Solana's current edge, Ethereum's upgrades and Layer 2 solutions could restore its dominance if scalability and fee issues persistSolana DEX Volume Hits $1.21 Trillion, Tops Ethereum & BNB[3].