Solana vs. Ethereum: As SOL’s DEX volume drops 24%, is it ETH’s time to shine?

• Solana outperformed Ethereum for 47% of 2025, however momentum appears to be stalling.
• DEX quantity drops and market tendencies counsel Ethereum might be primed for a comeback.

Solana [SOL] has had a formidable begin to 2025, outperforming Ethereum [ETH] for 47% of the 12 months to date, hinting at a doable shift in market sentiment.

Nevertheless, current developments elevate questions on its continued dominance.

Regardless of sturdy general efficiency, Solana has skilled a 24% drop in DEX quantity this week, resulting in hypothesis a couple of potential turning level.

With the ecosystem’s momentum dealing with a possible slowdown, is that this only a momentary setback, or are we seeing the start of a shift in Solana’s market place?

Solana: Indicators of a momentum shift?

Recent data highlighted Solana’s exceptional outperformance in opposition to Ethereum all through a lot of 2024, with a big surge in This autumn. Nevertheless, cracks have begun to look on this development.

Whereas Bitcoin [BTC] has maintained a robust trajectory, Solana’s worth swings have turn into more and more risky, mirroring Ethereum’s fluctuations.

Supply: X

Notably, the variety of days by which Solana outperformed Ethereum has plateaued, suggesting that its relative energy could also be fading.

The correlation between SOL and ETH worth actions can also be tightening, decreasing Solana’s earlier edge.

Given the current downturn in DEX quantity, this convergence raises questions on whether or not Solana’s dominance was a cyclical burst or if underlying fundamentals nonetheless justify its sustained market lead.

Latest decline in SOL DEX quantity

Solana’s DEX quantity has skilled a big downturn, with a 38% lower within the final week.

This marks the fifth consecutive week of declining volumes, with main DEXs like Raydium [RAY] and Orca [ORCA] witnessing drops of 54.34% and 20-30%, respectively.

Supply: DeFiLlama

A number of elements might be contributing to the current decline in Solana’s DEX quantity.

First, the rise of memecoins, significantly the controversial LIBRA token promoted by Argentine President Javier Milei, has precipitated vital losses for traders and tarnished Solana’s fame.

This has led to decreased person engagement and buying and selling exercise on Solana-based DEXs, as many customers turn into extra cautious of their buying and selling habits.

Moreover, the broader market-wide downturn is taking part in a task. The decline in Solana’s on-chain volumes mirrors comparable reductions seen throughout different blockchain networks like BNB Chain, Ethereum, Sui [SUI], and Polygon [POL].

This development signifies a common cooling of DeFi actions throughout the sector, suggesting that Solana’s struggles could also be a part of a wider slowdown available in the market.

Ethereum momentum: Right here to remain?

Ethereum was buying and selling at $2,801.32, up 1.37% on the day, because it tried to recuperate from current lows

Technical indicators steered combined momentum — RSI was hovering beneath the impartial 50 stage, indicating neither sturdy shopping for nor promoting strain.

In the meantime, the MACD histogram has flipped optimistic, exhibiting early indicators of bullish momentum.

Supply: TradingView

In January 2025, Vitalik Buterin introduced management adjustments throughout the Ethereum Basis, specializing in Layer 2 scalability and interoperability.

A current injection of $120 million price of Ether into DeFi protocols can also be anticipated to maintain the ecosystem at full energy.

Nevertheless, Ethereum faces challenges, together with community congestion and rising competitors from Solana.

Whereas Buterin’s updates could present long-term energy, Ethereum should overcome its longstanding hurdles with a purpose to rise above and maintain its place above Solana.