In the ever-volatile landscape of cryptocurrencies, Solana continues to make waves, outshining Ethereum in decentralized exchange (DEX) activity. July saw Solana’s DEX volume hit a staggering $124 billion, marking ten consecutive months of outpacing Ethereum. This development, analysts say, underscores a significant shift in user preferences within the decentralized finance (DeFi) sector.
Solana’s Meteoric Rise
Solana’s recent triumph is not just a blip on the radar. It’s a marked trend that reveals a shift in the dynamics of the DeFi ecosystem. According to Alliance DAO, over 40% of new project founders in the first half of 2025 chose Solana, compared to just 25% a year earlier. The allure? Solana’s ability to handle a large volume of transactions swiftly and inexpensively. “Developers are gravitating towards platforms that promise speed and cost-efficiency,” remarked blockchain analyst Jenna Harris. “Solana checks both boxes.”
This preference isn’t merely academic; it’s reshaping where the next wave of DeFi innovation is taking root. By consistently outperforming Ethereum in DEX volume—42% higher in July alone—Solana is crafting a virtuous cycle. More trading activity leads to more users, which, in turn, attracts more developers. It’s a feedback loop that might just redefine the DeFi landscape. This trend is further supported by major players in the crypto space, as detailed in our report on Galaxy Digital, Multicoin, and Jump Crypto’s $1B Solana fund.
Technical Insights: Solana’s Market Momentum
From a technical standpoint, Solana is currently trading above the $205 mark following a recent breakout, with the 20-day simple moving average (SMA) lingering around $191, providing a potential support level. The Moving Average Convergence Divergence (MACD) indicator is painting a bullish picture, showing green bars that traders often interpret as upward momentum. “Solana’s trajectory looks promising,” commented crypto trader Kamran Asghar, who has set his sights on a $300 target if the current bullish momentum holds.
Meanwhile, Ethereum’s journey has been turbulent. The cryptocurrency dipped below $4,800, showcasing the market’s current choppiness. “It’s a rollercoaster out there,” tweeted crypto analyst Ali, reflecting the market’s unpredictable sentiment shifts.
A Fragmented Market Landscape
Yet, while Solana enjoys its moment in the sun, Ethereum continues to satisfy institutional demand and maintain its dominance in other arenas. This dichotomy suggests a market that’s fragmenting along lines of specialization—DEX volumes favoring Solana, while Ethereum retains its stronghold in institutional flows. “It’s not a zero-sum game,” noted DeFi strategist Mark Liu. “Each platform is carving out its niche.” The strategic moves by major crypto firms to bolster Solana’s ecosystem, as explored in our coverage of the largest Solana treasury initiative, highlight this ongoing specialization.
The migration of projects to Solana isn’t seen as a full-scale rejection of Ethereum but rather a strategic response to Ethereum’s scalability challenges. “Ethereum still holds significant advantages,” added Liu, “but Solana offers a compelling alternative for those prioritizing speed and low fees.”
Looking Ahead: Questions and Possibilities
As the landscape evolves, the question remains: Can Solana maintain this momentum? The platform’s ability to handle burgeoning DEX volumes while attracting new projects will be pivotal. Meanwhile, Ethereum’s potential responses to scalability challenges—like the eagerly anticipated updates—could alter the playing field again.
In this dynamic environment, one thing is clear: the crypto market is far from static. With each platform honing its strengths, the DeFi sector is poised for more shifts and surprises in the months ahead. And as Solana continues its upward trajectory, market watchers will be keenly observing whether it can sustain this remarkable streak—or if Ethereum will stage a comeback.
Source
This article is based on: Solana Extends Streak, Outshines Ethereum in DEX Volume – Details
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
