Private DEXs dominate Solana's DeFi, reshaping performance with vault-based execution.
Institutional capital is increasing into SOL, indicating growing confidence despite short-term overbought signals.
Solana [SOL] has made a strong recovery after the overall market downturn, especially in the DeFi sector.
Its DeFi ecosystem is undergoing a major transformation, driven by vibrant activity from private DEXs.
In Q1 2025, the trading volume of DEX on Solana increased to $180 billion, up 62% compared to the previous quarter.
Solana redirects to its own DEX
A new report from Pine Analytics indicates a significant shift in DeFi on Solana. Private DEXs like SolFi, Obric v2, and ZeroFi now handle between 40% and 60% of routing transactions through Jupiter.
Unlike traditional DEXs, these platforms use smart contracts and internal vaults instead of public interfaces, signaling a profound transformation in how DeFi operates on Solana.
According to the Pine Analytics report,
"Their routing share reflects performance, not branding. These DEXs win routes for tight quotes, reliable execution, and avoiding unnecessary exposure."
To clarify, private DEXs on Solana will redefine trading performance by focusing on high liquidity token pairs, primarily SOL and stablecoins like USDC and USDT.
Platforms like Obric v2 and ZeroFi will prioritize stability by only quoting highly reliable tokens based on trustworthy price data.
In contrast, SolFi takes a more aggressive approach, catering to the high-speed world of long-tail assets and newly launched memecoins.
Another highlight?
These DEXs feature execution solely based on routing aggregates through Jupiter, pricing based on real-time USD oracles, and liquidity management from vaults to optimize execution.
This structure helps them effectively manage memecoin volatility, with tokens like Dogwifhat [WIF] and Bonk [BONK] generating significant volume while their oracle-based framework mitigates depreciation.
In simple terms, the latest findings from Pine Analytics indicate that DeFi on Solana is undergoing a fundamental transformation.
Private execution vaults are replacing open market participation, requiring no permission through a strict performance optimization system.
This new architecture leverages Solana's high throughput but sacrifices transparency and interoperability.
It limits the ability to see transaction execution and restricts protocol interaction, contrary to DeFi's fundamental principles.
Therefore, Solana must provide upcoming upgrades to make public quotes safer and more efficient to reverse this trend.
Until then, private vaults will continue to dominate the ecosystem.
Challenges may arise
Although private DEXs have played a significant role in Solana's DeFi ecosystem, upcoming network upgrades may challenge their long-term advantage by improving the performance and interoperability of public DEXs.
These improvements could shift momentum towards more public, easily accessible platforms.
The cryptocurrency community continues to criticize the transparency of the backers of private DEXs in an industry that is increasingly prioritizing transparency.
Meanwhile, institutional investors continue to express strong confidence in Solana, as DeFi Development Corp. (DeFi Dev Corp) recently purchased over 172K SOL worth $23.6 million, setting a new record.
DeFi Development Corp. buys SOL
For those who may not know, a recent SEC filing revealed that DeFi Development Corp. plans to raise $1 billion through the sale of securities. The goal is to accumulate Solana tokens over time.
A new report from Coinbase confirms that it has raised $42 million for the purchase of SOL. This indicates that a larger accumulation strategy could influence the market dynamics of Solana.
Institutional interest is increasing, and Solana's technical indicators show strong upward momentum. The token recently rose to $180.97, supported by strong CMF and RSI signals.
Despite increasing confidence, the RSI remains in the overbought territory, suggesting that a short-term correction may occur.
Source: Trading View
However, with the expansion of utility, increased capital flow, and the SOL/ETH pair maintaining important support despite Ethereum ETF's attention, the undervaluation of Solana is becoming increasingly hard to ignore.
The situation is changing, and Wall Street may soon need to adapt.
Source: https://tintucbitcoin.com/solana-defi-dev-corp-chi-236-trieu-usd-dex-tang-manh/
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