The decentralized exchange (DEX) landscape has witnessed a significant decrease in weekly on-chain trading volumes since mid-January, with figures plummeting from a towering $173 billion to a modest $90 billion last week, according to recent data from DefiLlama. The Solana network, in particular, has suffered the most significant decrease within this period.
The period from January 11 to 17 marked a zenith in DEX trading volumes, as the weekly aggregate reached an all-time high of $173 billion. Solana emerged as the main catalyst during this period, accumulating over $97.5 billion in on-chain trading activity.
In the subsequent week, the on-chain trading volumes retained their momentum, with DEXes processing almost $171 billion. The Binance Smart Chain (BSC) was instrumental in this sustained activity, witnessing a 76% surge in its weekly activity, culminating at nearly $30 billion.
However, the final week of January saw DEXes losing their grip, with volumes falling to approximately $120 billion, marking a 30% decrease. Once again, Solana was a significant player in this downturn, shedding nearly $40 billion in weekly trading volume while other blockchains maintained volumes similar to the previous week.
The downward trend in weekly volumes persisted into the first week of February. DEXes reported an aggregate of $107.4 billion, and Solana experienced a further loss of nearly $10 billion in activity. For the first time in five weeks, weekly on-chain volumes fell below the $100 billion mark, recording only $90 billion between February 8 and 14.
Interestingly, Solana did not lead the weekly trading activity for the first time since early October. Traders shifted nearly $30 billion on BSC compared to Solana’s $26.2 billion. However, BSC’s surge appears to be fleeting as Solana has reclaimed the lead in on-chain volume for the week commencing February 15.
The weekly contraction in on-chain volumes underscores the critical role that Solana plays in activity on decentralized exchanges.
Despite these weekly setbacks, the monthly volume of DEXes remains robust compared to their centralized counterparts. As of the time of reporting, the ratio of month-to-date volume traded on decentralized and centralized platforms stands at 16.7%, based on on-chain data.
Even with a 3.3% pullback from last month’s high of 20%, the percentage remains higher than last year’s peak of 13.9% registered in October, suggesting that despite recent fluctuations, the decentralized exchange landscape remains resilient and vibrant.
