Titan Solana Swap Market Report - February 2025
Published: 2025-03-03
Updated: 2025-03-03
We are excited to bring you the 5th edition of Titan’s State of Solana’s Swap Markets report for January 2025 where we focus on DEX Aggregators. As always, please note that the data used is from Dune and although fairly accurate, crypto data in particular should be used more on a relative basis and as a heuristic rather than a focus on the absolute values given large gaps and differences in data between different providers.
The major event affecting the DeFi space was the launch of the LIBRA token and the subsequent rugpull that was co-ordinated by multple known figures in the space that co-opted the Argentine President. An excellent overview can be found here on LIBRA. This has put a dampener in terms of trading volume as users have finally reached a fatigue point in terms of new memecoins. Expect the market to be choppier until a new catalyst arrives, but the good news here is that volumes are still very strong and holding up, especially considering where the ecosystem was just a year ago.
Swap Aggregation Market
In the first half of February 2025, the market was already stabilizing from the huge influx of activity and volume brought by TRUMP and MELANIA. When LIBRA launched on February 14th and subsequently rugpulled just 3 hours later, this slowed down markets even more.
The Solana DEX Aggregation market processed around $54B in volume in February, which reflects a 60.5% decrease in volume as compared to last month. As noted previously, January was a large outlier, so it was expected that volumes would drop, although not by as much as expected. In fact, February’s volume was still far greater than 8 out of the last 12 months, so predictions of doom for Solana can be easily disregarded.
The number of swaps done also dropped to 139M, but by a smaller percentage than swap volume, indicating that average volume sizes have gone down as less large positions are being taken by traders. In addition, the numer of unique wallets have also only dropped to 5.8M, showing that users are still very interested in the Solana ecosystem and merely waiting for the right moment.
Venues
As crypto markets are on a hyper-accelerated timeline, we continue to see new innovations in the space come and take large amounts of market share extremely quickly. With DEXes becoming more complicated with custom market making solutions or specializations, we expect to see more DEXes take this specialization route instead of a one size fits all methods pioneered by Uniswap V2 and V3 pools.
As expected, Raydium continues to dominate, although that may be called into question as pump.fun may be building their own pools instead of moving liquidity over to Raydium. As 80% of their volume relies on AMM pools, this can be significant.
Specific market making AMMs such as SolFi and ZeroFi have jumped onto the scene quickly and are often providing the best liquidity, with them contributing 18.5% and 13.5% of the volume respectively. These two players have figured out a method to keep making profits for their LPs, and they are being rewarded generously. Most of the market share was taken from DEXes who previusly focused on highly liquid pairs.
Meteora has also come down to earth after TRUMP and Melania. It is now back to standard market share levels of around 10.8%.
Tokens
When taking a look at which tokens were trading, it can be confirmed that traders have seen a big drop in memecoin interest. SOL concentration power, which can be used as a proxy for memecoin interest due to almost all memecoins being paired against it, dropped to a low of 66%. In the meantime, stablecoins such as USDC and USDT shot up to 66% and 14.5% respectively as traders either switch to stablecoins to ride out the market volatility or deploy their stablecoin holdings to build a position at attractive prices.
In addition, interest in JLP has gone up dramatically as traders are using it as basically an index for the most liquid tokens today in the entire market (SOL, ETH, WBTC, USDC, USDT).