What to know:
- Solana DEX weekly volume topped Bybit, Coinbase, and Kraken combined for 5 weeks, ranking 2nd only to Binance.
- Concentrated liquidity, cheaper trades, and Solana-native memecoins, perp DEXs, and launchpads are pulling retail flow from CEXs.
- CEXs face pressure as MiCA, VARA, and institutional on-chain interest grow.
Solana has overtaken @Bybit_Official, @coinbase, and @krakenfx at record-high decentralised exchange spot trading volumes for the week on five consecutive weeks placing it just behind Binance. The trend is a sign of the liquidity shift in crypto markets from CEXs to DEXs which is a new pattern.
DEXs Overtake CEXs in Weekly Volume
Research finds that weekly Solana-based DEX spot volume has been higher than the combined volumes of Bybit, Coinbase, and kraken since 5 weeks back as per DeFiLlama. For weekly total spot trading volume, only Binance trails it.
Source: Binance
The main reasons for the growth has been concentrated liquidity, lower fees, and the revival of developers around Solana natively memecoins, perp DEXs, and token launchpads. The trend indicates a shift compared to the 2023-2024 period when CEXs held the major share of the retail flow.
Also Read: Solana Price Eyes $1,000 Breakout as Bullish Setup Aligns With Network Upgrade
Why Solana Aggregators Are Reshaping Crypto Trading
If they have a significant interest in investing and managing their portfolios, the investors and institutions can enjoy the benefits of deeper on-chain liquidity. First of all, they won’t suffer from slippage, and their trades can still get executed, no matter how small or big. They also get to have access to a great amount of assets (long-tail), without taking any custody risk.
With developers, the benefits are clear through composability and faster iteration cycles of DApps. Funds, on the behalf of clients or themselves, use aggregators more and more to be able to reach liquidity on Solana, among other things. CEXs, such as Bybit, Coinbase, and Kraken, the trend forces them to react and it puts their fees at a risk.
Also Read: Binance.US Plans CFTC License to Enter U.S. Prediction Market
Can Solana Benefit From Global Crypto Regulation?
In a way, that transition is happening in parallel with some other big events of these next two years – namely the implementation of MiCA regulation in Europe, the appearance of a new clear VARA structure in Dubai, and an increasing institutional interest in on-chain products with regulation.
Source: Binance
For Solana, probably the hardest thing would be to perform well in times of turmoil and to show that the network is actually secure.
Also Read: BNB Price Prediction: Will Binance Coin Reclaim $570 or Plunge to $520?
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