Ethereum has regained its dominance in decentralized exchange (DEX) trading volume, surpassing Solana for the first time since September 2024. According to data from DefiLlama, Ethereum-based DEXs recorded approximately $63 billion in trading volume throughout March 2025, outpacing Solana’s $51 billion. This marks a significant shift in the ongoing competition between the two leading smart contract blockchains.
Solana’s DeFi Momentum Slows
For months, Solana led the DEX market, bolstered by its low transaction fees and high throughput. Institutional players, including Franklin Templeton, previously noted Solana’s DeFi surge, highlighting its potential to challenge Ethereum’s valuation.
However, recent declines in trading volume on Solana-based platforms suggest a shift in market dynamics. Key platforms like Raydium (RAY) and Pump.fun have experienced significant downturns. Pump.fun, which saw a peak trading volume of $7.75 billion in January, fell to just $2.53 billion in March—a staggering 67% decline.
This drop is closely linked to a slowdown in the platform’s token graduation rate, which measures the percentage of new tokens reaching a $100,000 market cap threshold. According to Dune Analytics, this rate has decreased from 0.8% to 0.65% per week, leading to reduced overall trading activity on Solana’s DEX ecosystem.
Ethereum’s Resilience and Market Strength
While Solana’s momentum has waned, Ethereum’s DEX ecosystem has remained robust. Uniswap (UNI) alone contributed over $30 billion in trading volume in March, significantly reinforcing Ethereum’s dominance. Additionally, Curve Finance (CRV) and other key platforms have maintained steady activity, attracting liquidity and institutional interest.
Ethereum’s resurgence is largely attributed to its well-established infrastructure and strong network effects. Despite its higher gas fees compared to Solana, Ethereum continues to attract high-value trades, reinforcing its position as the preferred blockchain for DeFi.
Future Outlook: Ethereum’s Upgrades and Market Sentiment
Looking ahead, industry analysts believe Ethereum’s momentum may extend into Q2 2025. The upcoming Pectra upgrade, successfully deployed on the Holesky testnet, is expected to enhance scalability and efficiency once implemented on the mainnet. This could further boost user adoption and trading activity.
Also Read: Ethereum’s Privacy Pools: A Compliant Solution for Private Transactions
Moreover, Ethereum’s spot ETFs have seen net inflows, in contrast to Bitcoin ETFs, signaling growing investor confidence in Ethereum’s long-term viability. As Ethereum continues to strengthen its DeFi ecosystem, Solana faces an uphill battle to reclaim its previous dominance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
