Ethereum Reclaims DEX Crown—What’s Behind Solana’s Sudden Fall?

Additionally, Ethereums infrastructure and smart contract maturity continue to attract sophisticated traders and liquidity providers.

Stable platform architecture combined with decentralized management makes the chain more attractive in markets characterized by fluctuations.

These attributes give it a consistent edge even when competitors offer lower fees.

The upcoming Pectra upgrade, which aims to improve scalability and efficiency, further supports Ethereums position.

Pectra will be launched in Q2 after its successful deployment to the Holesky testnet.

This network enhancement could boost usage and reinforce the long-term market position.

Solana Faces DeFi User Retention Issues

The DEX trading numbers on Solana significantly decreased after numerous weeks of progressive growth, leading to strong market outcomes.

Major trading platforms Raydium and Pump.fun show reduced user activity, according to system data.

This decline has contributed to Solana falling behind Ethereum in Marchs trading volume.

The volume at Pump.fun plunged sharply from its original $7.75 Billion in January to just $2.53 Billion in March.

Solanas overall trading indicators suffered major consequences after the trading volume decreased by 67%.

Because of the market‘s decreased activity, Solana’s DeFi landscape now faces sustainability and user retention challenges.

Pump.fun trading volume | Source: DefiLlama

The token graduation rate on Pump.fun has significantly decreased, which is the main cause of this downward trend.

The rate measuring Raydium token movement through Pump.fun decreased from 0.8% to 0.65% each week.

Ethereum Gains Edge With Institutional Backing

Solana faces an ongoing challenge to grow at the same rate as Ethereum does because investors now show more interest in Ethereum under more positive market conditions.

The spot Ethereum ETFs have delivered recent positive financial movement which contrasts with Bitcoin ETFs moving funds in the opposite direction.

A capital movement toward fundamental development appears probable based on these recent changes.

New institutional support for Ethereum is increasing because its development team actively works on scaling projects.

Market observers demonstrate growing faith in Ethereum‘s future success because they are taking positive notice of Ethereum’s strategic platform upgrades and growing industrial operations.

According to analyst predictions, the cryptocurrency markets performance during Q2 will determine how much market dominance Ethereum can maintain.

Technological developments on Ethereum, along with institutional support, create a positive on-chain environment that strengthens both adoption and its market dominance against alternative blockchain networks.