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

• Solana outperformed Ethereum for 47% of 2025, but momentum seems to be stalling.
• DEX volume drops and market trends suggest Ethereum could be primed for a comeback.

Solana [SOL] has had an impressive start to 2025, outperforming Ethereum [ETH] for 47% of the year so far, hinting at a possible shift in market sentiment.

However, recent developments raise questions about its continued dominance.

Despite strong overall performance, Solana has experienced a 24% drop in DEX volume this week, leading to speculation about a potential turning point.

With the ecosystem’s momentum facing a potential slowdown, is this just a temporary setback, or are we seeing the beginning of a shift in Solana’s market position?

Solana: Signs of a momentum shift?

Recent data highlighted Solana’s remarkable outperformance against Ethereum throughout much of 2024, with a significant surge in Q4. However, cracks have begun to appear in this trend.

While Bitcoin [BTC] has maintained a strong trajectory, Solana’s price swings have become increasingly volatile, mirroring Ethereum’s fluctuations.

Source: X

Notably, the number of days in which Solana outperformed Ethereum has plateaued, suggesting that its relative strength may be fading.

The correlation between SOL and ETH price movements is also tightening, reducing Solana’s previous edge.

Given the recent downturn in DEX volume, this convergence raises questions about whether Solana’s dominance was a cyclical burst or if underlying fundamentals still justify its sustained market lead.

Recent decline in SOL DEX volume

Solana’s DEX volume has experienced a significant downturn, with a 38% decrease in the last week.

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

Source: DeFiLlama

Several factors could be contributing to the recent decline in Solana’s DEX volume.

First, the rise of memecoins, particularly the controversial LIBRA token promoted by Argentine President Javier Milei, has caused significant losses for investors and tarnished Solana’s reputation.

This has led to reduced user engagement and trading activity on Solana-based DEXs, as many users become more cautious in their trading behavior.

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

This trend indicates a general cooling of DeFi activities across the sector, suggesting that Solana’s struggles may be part of a wider slowdown in the market.

Ethereum momentum: Here to stay?

Ethereum was trading at $2,801.32, up 1.37% on the day, as it attempted to recover from recent lows

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

Meanwhile, the MACD histogram has flipped positive, showing early signs of bullish momentum.

Source: TradingView

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

A recent injection of $120 million worth of Ether into DeFi protocols is also expected to keep the ecosystem at full strength.

However, Ethereum faces challenges, including network congestion and rising competition from Solana.

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