Ethereum Poised to Outshine as Solana’s DEX Volume Plunges by 24%

Key Points

• Solana [SOL] outperformed Ethereum [ETH] for 47% of 2025, but is facing a potential momentum shift.
• Ethereum could be poised for a comeback as Solana’s DEX volume drops and market trends change.

Solana [SOL] has been a standout performer in 2025, outpacing Ethereum [ETH] for nearly half the year, indicating a possible change in market sentiment.

However, the recent turn of events raises doubts about Solana’s continued supremacy.

Solana’s Momentum Shift

Despite a strong overall showing, Solana saw a 24% decrease in DEX volume this week, sparking rumors of a potential turning point.

The question now is whether this is a temporary hiccup or the start of a shift in Solana’s market standing.

Solana’s exceptional performance against Ethereum in 2024, particularly in Q4, was notable. However, this trend is starting to show signs of strain.

While Bitcoin [BTC] has remained on a steady path, Solana’s price fluctuations have become increasingly erratic, echoing Ethereum’s volatility.

The number of days Solana outshined Ethereum has leveled off, suggesting its relative strength may be waning.

The correlation between SOL and ETH price movements is getting tighter, diminishing Solana’s previous advantage.

The recent drop in DEX volume and this convergence raise questions about whether Solana’s dominance was a temporary surge or if the underlying fundamentals still support its sustained market leadership.

The Decline in Solana’s DEX Volume

Solana’s DEX volume has seen a significant drop, with a 38% decrease in the past week.

This marks the fifth week in a row of declining volumes, with top DEXs like Raydium [RAY] and Orca [ORCA] experiencing drops of 54.34% and 20-30%, respectively.

Several factors may be contributing to Solana’s DEX volume’s recent decrease.

Firstly, the emergence of memecoins, especially the controversial LIBRA token promoted by Argentine President Javier Milei, has resulted in substantial losses for investors and damaged Solana’s reputation.

This has led to a decrease in user engagement and trading activity on Solana-based DEXs, as many traders become more cautious.

Additionally, the broader market downturn is also a factor. Solana’s on-chain volumes decline mirrors similar reductions seen across other blockchain networks like BNB Chain, Ethereum, Sui [SUI], and Polygon [POL].

This pattern suggests a general slowdown in DeFi activities across the industry, indicating that Solana’s difficulties may be part of a larger market downturn.

Ethereum’s Momentum

Ethereum was trading at $2,801.32, up 1.37% on the day, as it tried to bounce back from recent lows.

Technical indicators showed mixed momentum – RSI was below the neutral 50 level, indicating neither strong buying nor selling pressure.

However, the MACD histogram turned positive, indicating early signs of bullish momentum.

In January 2025, Vitalik Buterin announced leadership changes within the Ethereum Foundation, with a focus on Layer 2 scalability and interoperability.

A recent $120 million worth of Ether injection into DeFi protocols is also expected to maintain the ecosystem’s strength.

Nevertheless, Ethereum faces challenges, including network congestion and increasing competition from Solana.

While Buterin’s updates may provide long-term strength, Ethereum must address its longstanding hurdles to rise above and maintain its position above Solana.