According to
data
from DefiLlama, the total value of digital assets exchanged weekly on decentralized exchanges (DEXs) has been on a downward trend since mid-January. We’ve seen a dip from around $173 billion to about $90 billion in the past week. Solana’s weekly trading volume experienced the most significant reduction during this period.
Between January 11th and 17th, decentralized exchanges saw their highest weekly trading volume ever, reaching $173 billion.
Solana
played a crucial role, contributing over $97.5 billion in on-chain transactions.
The following week, activity on DEXs remained strong, processing nearly $171 billion.
Binance
Smart Chain (BSC) was a significant factor, with its weekly volume increasing by 76% to almost $30 billion.
However, this momentum proved unsustainable, as total DEX volumes declined by approximately 30% to $120 billion in the final week of January.
Solana Facing Headwinds
The primary driver of this shift was again linked to Solana. The network’s weekly trading volume fell by nearly $40 billion, while other blockchain networks maintained volumes similar to those of the previous week.
The decline continued into the first week of February, with total DEX volume dropping to $107.4 billion, and Solana’s activity decreasing by nearly $10 billion. Between February 8th and 14th, weekly on-chain volume fell below $100 billion for the first time in over a month, settling at only $90 billion.
Notably, this period marked the first time since early October that Solana did not lead in weekly trading activity. Traders moved approximately $30 billion on BSC, exceeding Solana’s $26.2 billion.
BSC’s lead seems to be temporary. Preliminary data indicates that Solana is regaining its position as the leader in on-chain volume for the week commencing February 15th.
The overall contraction in weekly on-chain volume highlights the degree to which decentralized exchange activity is still reliant on the Solana blockchain.
Still Robust Overall
Despite recent weekly dips, the aggregate monthly volume on decentralized exchanges remains comparatively strong compared to their centralized counterparts.
Currently, the ratio of month-to-date trading volume between decentralized and centralized platforms is 16.7%, according to on-chain data.
Even after a 3.3% decrease from last month’s high of 20%, this percentage is still higher than last year’s peak of 13.9%, recorded in October.