Solana’s private DEXs now handle 60% of routed volume as SOL price hits $185, signaling the potential for further gains
The DeFi sector in Solana is experiencing a literal blackout. Private DEXs are currently responsible for the preponderance of Jupiter-routed trades, representing a significant change in Solana’s activity. On Tuesday, SOL momentarily reached $185, its highest level in nearly three months, before eventually declining to $180 by Wednesday.
This increase results from a surge in trading activity in non-public smart contract repositories.
Shaking Up SOL Price Dynamics: Private DEXs
According to a report from Pine Analytics, platforms such as SolFi, Obric v2, and ZeroFi now account for 40% to 60% of all volume routed via Jupiter. These private DEXs do not provide public order books or user interfaces. Instead, they employ Oracle pricing to ensure precision and operate through internal repositories.
In contrast to conventional DEXs, they garner trades based on the standard of their execution. They possess a natural advantage due to their rapid fills, tight quotes, and reduced exposure. Obric v2 and ZeroFi prioritize high-liquidity pairs such as SOL/USDC and SOL/USDT, while SolFi frequently quotes newly launched meme currencies.
The emergence of private DEXs has introduced an additional layer of complexity to Solana trading. It also has drawbacks, including anonymous sponsors, opaque data, and no front-end access.
The price of SOL has been inconsistently affected. Meme coin trading, which was primarily conducted through private DEXs, contributed to the rally. However, the absence of transparency is causing apprehension. It could attract regulators or result in liquidity being separated across platforms.
Will Solana Upgrades dim the Private Dex Spotlight?
Solana intends to enhance the composability and pricing of public DEXs through enhancements. By enhancing execution on open platforms, these modifications may undermine the dominance of private DEXs.
The Solana price will reach $300 within the next month. The SOL coin achieved a weekly revenue of $50 million from dApps, surpassing all other networks just last week.
Meme coin strength and macro factors also contributed to Bonk (BONK)’s 60% rally earlier this week. That surge, similar to SolFi’s increasing volume, underscores the extent to which Solana’s private DEX trend influences short-term price fluctuations.
