For the first time since September, Ethereum has reasserted its dominance in decentralized exchange (DEX) trading volume, surpassing Solana amid a broad market downturn and declining speculative activity—particularly in the memecoin sector. In March 2025, Ethereum-based DEX platforms recorded a staggering $64.616 billion in cumulative trading volume, outpacing Solana’s $52.62 billion by 22%, according to data from DefiLlama.
This shift marks a pivotal moment in the ongoing competition between two of the most prominent smart contract blockchains. While Solana surged ahead in late 2024—fueled by explosive memecoin trading and low transaction fees—Ethereum’s resilient ecosystem and robust Layer 1 infrastructure have now helped it reclaim the top position.
Market Downturn Impacts Speculative Trading
The reversal in DEX leadership occurred against a backdrop of bearish sentiment across the broader cryptocurrency market. Total crypto market capitalization dropped 4.2% to $2.63 trillion in March, extending February’s steep 20% decline. Bitcoin, once trading above $80,000, slipped below that key psychological level due to macroeconomic uncertainty and investor disappointment over the absence of new U.S. strategic reserve purchases of BTC.
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This cooling of investor enthusiasm significantly affected high-risk, high-reward assets like memecoins—many of which are launched and traded primarily on Solana-based platforms. Raydium, the largest DEX on Solana and a central hub for memecoin speculation during the 2024 rally, saw its daily trading volume fail to surpass $1 billion at any point in March. This is a sharp contrast to its all-time high of $13 billion on January 18, as reported by DefiLlama.
Similarly, trading activity on Solana’s popular memecoin launch platform plummeted, averaging less than $100 million per day in March—down from a peak of $390 million in mid-January. The spike in January was largely driven by the launch and rapid trading of politically themed tokens such as TRUMP, which drew massive short-term attention but failed to sustain long-term engagement.
Ethereum’s Resilience Driven by Core Protocols
While Solana struggled with declining speculative momentum, Ethereum demonstrated resilience through its mature and diversified DeFi ecosystem. Uniswap, the flagship decentralized exchange on Ethereum, alone accounted for over $30 billion in trading volume during March—representing nearly half of the network’s total DEX activity.
Following behind was Fluid, another major Ethereum-based DEX, which recorded $9 billion in volume—solidifying Ethereum’s lead through strength in both scale and protocol diversity. Unlike Solana, whose DEX performance is heavily influenced by short-lived memecoin trends, Ethereum benefits from a broader base of stablecoins, yield-generating assets, and institutional-grade DeFi applications.
Despite these gains in trading volume, Ether (ETH) itself faced price pressure, falling more than 18% to $1,822 by the end of March—outpacing Solana’s SOL, which declined by 15.8% over the same period.
Why Did ETH Underperform Despite Network Success?
A key paradox emerged: Ethereum’s network activity thrived while its native token underperformed relative to peers. Analysts point to two primary factors behind this divergence.
First, Ethereum’s current tokenomics include an inflationary issuance model post-Merge, especially when network demand is high. Increased block space usage leads to higher base fee burns but also results in greater validator rewards—netting positive ETH issuance during active periods.
Second, the rise of Layer 2 (L2) scaling solutions such as Arbitrum, Optimism, and Base has led some observers to argue that value creation is increasingly happening off-chain. These L2s process transactions more efficiently while relying on Ethereum for security, potentially diluting direct economic benefits to ETH holders.
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As noted by industry analyst Nic Carter, “The success of L2s is a double-edged sword for Ethereum. It proves the strength of its settlement layer, but raises questions about whether ETH is capturing enough of the value generated across its ecosystem.”
Core Keywords and Market Positioning
This shift underscores several core keywords critical to understanding current trends in decentralized finance:
- Ethereum DEX volume
- Solana memecoin decline
- Uniswap trading dominance
- DeFi market trends 2025
- Raydium volume drop
- Layer 2 impact on ETH
- crypto market downturn
- smart contract blockchain ranking
These terms reflect not only the technical dynamics at play but also evolving user behavior and macro-level influences shaping blockchain adoption.
Frequently Asked Questions (FAQ)
Q: Why did Ethereum surpass Solana in DEX volume?
A: Ethereum regained the top spot due to stronger performance from established DeFi protocols like Uniswap and a broader range of non-speculative trading pairs. Meanwhile, Solana’s volume declined as memecoin activity cooled.
Q: Is Solana losing relevance in DeFi?
A: Not necessarily. Solana remains a major player with fast transaction speeds and low fees. However, its reliance on speculative trading makes it more vulnerable during bearish market phases.
Q: Does higher DEX volume mean ETH will rise in price?
A: Not always. While strong on-chain activity can support long-term value accrual, short-term price movements depend on macro factors, investor sentiment, and tokenomics.
Q: What role do Layer 2 solutions play in Ethereum's growth?
A: Layer 2s enhance scalability and user experience without compromising security. They drive adoption but may reduce direct fee revenue to the Ethereum mainnet, influencing perceptions of ETH’s value capture.
Q: Was the TRUMP token responsible for Solana’s earlier lead?
A: Yes—the launch and trading frenzy around political memecoins like TRUMP significantly boosted Solana’s DEX volumes in January 2025. However, this proved temporary rather than sustainable growth.
Q: How reliable is DefiLlama data for tracking DEX volumes?
A: DefiLlama is widely regarded as one of the most transparent and accurate sources for DeFi metrics, aggregating data directly from on-chain smart contracts across multiple chains.
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Looking Ahead: Sustainability Over Speculation
The March reversal suggests a potential return to fundamentals in decentralized finance. While speculative manias can propel networks to temporary highs, sustained leadership appears tied to protocol maturity, ecosystem diversity, and resilience during downturns.
Ethereum’s ability to maintain high-volume trading even during a price slump highlights the strength of its underlying infrastructure. For developers, investors, and users alike, this reinforces confidence in Ethereum as a foundational layer for long-term innovation.
As the market navigates ongoing volatility and regulatory scrutiny, chains that prioritize utility over hype are likely to emerge stronger. Ethereum’s comeback isn’t just about reclaiming a rank—it’s a signal that depth and durability still matter in Web3.
With DeFi continuing to evolve rapidly, staying informed through trusted platforms becomes essential for anyone looking to understand where value is truly being created.