Despite an overall 38% decline in weekly cryptocurrency trading volume across decentralized exchanges (DEXes) on various smart contract platforms, Solana’s DEXes demonstrated resilience with only an 8.6% decrease, as reported by DefiLlama.
While major platforms like Optimism experienced substantial losses, surpassing 60%, and both Polygon and Arbitrum saw significant declines of around 50%, Solana’s DEXes, particularly Saber and Raydium, managed to mitigate losses, showcasing 45% and 32% growth in trading volume, respectively.
In the realm of decentralized exchanges dominance, Solana is steadily closing the gap on Ethereum, evident in January’s trading volume data. Initially, Solana ranked third with just over 13% dominance in the first week, trailing behind Arbitrum’s 18% and Ethereum’s 34%. However, by the last week, Solana surpassed Arbitrum, securing a 19.5% market share, while Ethereum maintained a slightly reduced dominance at 31.5%.
While this may seem like a modest achievement for Solana, the contrast in dominance from the same period last year is noteworthy, with Ethereum holding nearly 67% compared to Solana’s 2.4%. This upward trend in Solana’s decentralized exchanges began in October 2023, marking a significant increase in dominance.
Solana reached its peak dominance in weekly trading volume during the third week of December 2023, coming within 0.34% of Ethereum’s volume, almost considered a technical draw. Subsequently, Solana’s DEXes experienced a temporary decline before rebounding in trading volume between January 13 and 19.
