In a remarkable turnaround, Ethereum has taken back its place as the dominant blockchain in trading volume for decentralized exchanges (DEXs).
After Solana had spent several months in first place, Ethereum has now reclaimed the top position it last held in September 2024. Ethereum was not only resilient during the past few months, but it also surged dramatically in trading activity this March 2025—reaching trading volume levels it had not seen in approximately six months. That surge, on top of its already solid position in trading on DEXs, now makes Ethereum the leading blockchain for DeFi traders.
Ethereum’s Strong Comeback: Dominating the DEX Market
The most recent data shows that total DEX volume in March reached an impressive $245.8 billion. Ethereum accounted for 26.3% of this total, putting it ahead of Solana and atop the leaderboard among blockchains. Solana, which had seen a surge in DEX trading activity thanks to its high-speed, low-cost transactions, held 21.4% of the total market share in March, marking a noticeable decline in its fortunes as Ethereum surged on the volume front. This shift is the latest indication that confidence is returning to Ethereum’s DeFi ecosystem, which continues to attract both retail and institutional traders despite competition from other blockchains.
Ethereum returns as DEX volume leader in March@ethereum reclaimed its position as the leading blockchain for DEX trading volume, surpassing @solana for the first time since September.
The total DEX volume in March amounted to $245.8 billion, with @ethereum capturing 26.3% and… pic.twitter.com/bnxFEyZ88x
— CryptoRank.io (@CryptoRank_io) April 3, 2025
Several factors have brought Ethereum back to life. First, it is underpinned by continued active development that has, among other things, made Ethereum more scalable. Second, it has maintained a dominant position in the decentralized finance (DeFi) space. It is where you go if you want to do anything on a dApp or a protocol in the DeFi space. Its foundation seems to be unshakeable.
In recent months, Ethereum has also profited from the blossoming popularity of layer-2 solutions like Optimism and Arbitrum. These protocols, which operate on top of Ethereum, offer users faster and cheaper transactions while keeping the security promises that Ethereum itself makes. That assurance is crucial since layer-2s will inevitably process plenty of transactions for protocols that could be described as dubious. Still, they are using Ethereum’s base layer for assurance, and they had better not have a security incident.
Solana’s Decline: What Does it Mean for the Future?
Ethereum may still have the upper hand in terms of total value locked, but it and its layer-2 solutions still have plenty of room for improvement if they want to stay ahead of blockchain monoliths like Solana. While Solana is now back on an upswing, its trading volume in the DeFi space has dipped recently. This decline has coincided with a spike in DEX trading on layer-2 solutions like Optimism, as well as on Ethereum itself.
This decline could have several causes. One possible reason is the continued upheaval in the cryptocurrency market, which has prompted some investors to move their assets into more stable, established ecosystems like Ethereum. Solana had a tough 2023, marked by serious network outages and some security problems, which raises questions about whether these issues affected user confidence. However, Solana is picking itself back up and has implemented improvements to bolster stability and security. Its innovative economic model continues to appear sound and equitable, serving as a foundation for future growth.
Meanwhile, the increasing adoption of Ethereum layer-2 solutions is particularly noteworthy. As Ethereum scales and becomes more accessible to a wider audience, the once-impressive transaction speed of Solana may not stand out as much. This shift is significant, as the downturn in the DeFi marketplace has not unfavorably impacted Ethereum, whose robust developer community and comprehensive ecosystem grant it a distinctive advantage in the space.
Ethereum’s Competitive Edge: What’s Next for DEX Volume?
Ethereum’s regained control over decentralized exchange (DEX) trading volume signifies the maturation of the decentralized finance (DeFi) market. Helmed by Ethereum, the continued evolution of the DeFi market presents opportunities for enhanced growth and innovation.
Most DeFi assets and platforms are primarily anchored on the Ethereum blockchain, despite the emergence of alternative networks over the last year. Ethereum remains the quintessential bedrock for DeFi operations, showcasing its resilience and adaptability in an ever-evolving digital landscape.
The Development of Decentralized Assets
The landscape of decentralized finance continues to mature along with the development of decentralized applications (dApps). These applications are built on smart contracts, showcasing the profound capabilities of Ethereum when it comes to realizing the promises of decentralized finance.
With a strong foundation in Ethereum smart contracts, solutions like the Elrond (EGLD) ecosystem denote the evolution happening within decentralized asset classes. This evolution highlights how integrating Ethereum with layer-2 solutions and other enhancements can make it increasingly appealing and effective in accommodating a growing user base.
This improved scalability and transition to proof of stake lays the groundwork for Ethereum to maintain its lead in DeFi over newer blockchains such as Solana, which are also establishing impressive DeFi ecosystems.
Additionally, Ethereum’s thriving developer community strengthens its standing as a top-tier solution within the NFT market. This prominent presence across various sectors of the crypto landscape enhances Ethereum’s network effects, not just limited to DEXs but spreading across a wide array of applications that include NFTs, gaming, and beyond. Such broad-spectrum appeal allows Ethereum to retain its competitive position as the premier blockchain for DeFi and numerous other crypto use cases.
