Solana Overtakes Coinbase and Kraken as DEX Volume Surges
Solana is starting to blur the line between decentralized and centralized trading, with on-chain volumes now matching - and at times exceeding - some of the industry’s biggest exchanges.
Summary:
- Solana DEX volume hit $10.7 billion in a day, overtaking Coinbase and Kraken.
- Execution speed and fees are no longer a clear advantage for centralized exchanges.
- Traders are increasingly splitting activity between CEXs and on-chain venues.
The shift reflects what market participants increasingly describe as a “convergence trade,” where the historical advantages of centralized exchanges – speed, liquidity and execution – are being matched by decentralized alternatives.
Solana Starts Eating Into CEX Volume
Data from BlockWorks indicates that at the start of April, Solana-based DEXs processed about $10.71 billion in spot volume over 24 hours. That was enough to move ahead of Coinbase and Kraken – something that would have been hard to imagine even a year ago.
That effectively puts Solana behind only Binance and Bybit in terms of trading activity, at least on certain days.
More importantly, it hasn’t been a one-off. Solana has led all major chains in DEX volume for six straight months, which points to something more structural taking shape rather than a temporary burst of activity.
Liquidity and Scale Are Catching Up
One of the biggest reasons decentralized trading struggled in the past was liquidity. That’s changing quickly.
According to data from Bitget, Circle minted around $3.25 billion worth of USDC on Solana in early April, pushing total supply on the network past $18 billion.
That kind of depth makes it much easier to handle larger trades without the slippage that used to push traders back to centralized venues.
At the same time, total economic activity on Solana hit about $1.1 trillion in the first quarter. That number alone shows how much volume is now flowing through the network.
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Centralized exchanges still dominate overall – roughly 80% of spot volume – but the direction of travel is starting to shift.
Why Traders Are Moving On-Chain
The “latency gap” that once favored CEXs has largely disappeared due to Solana’s network upgrades, allowing DEX aggregators like Jupiter to offer execution speeds comparable to centralized platforms.
Fees are another factor. For many retail users, trading on centralized platforms – especially via “instant buy” – can cost anywhere from 0.4% to 0.6%. On Solana, that’s often lower, even after factoring in network costs.
What’s emerging is a hybrid setup. Traders are still using centralized exchanges to move fiat in and out, but once funds are there, they’re shifting activity on-chain for speed, cost, and control.
Not Without Setbacks
Earlier this month, a more than $280 million exploit linked to Drift Protocol – driven by social engineering rather than a code flaw – shook confidence briefly. Volumes dropped sharply from earlier highs before stabilizing again.
Incidents like that are a reminder that while the tech is improving, operational risks haven’t disappeared.
On the price side, traders are watching the $80–$82 range for SOL as a key level. Holding that zone could be important if the network is going to keep its current momentum. At the time of writing Solana is trading around $83.
Pressure Builds on the Middle Tier
What’s really changing is the competitive landscape. Top-tier exchanges like Binance and Bybit still dominate where it matters most – deep liquidity and derivatives. But below that, the pressure is building.
Platforms like Coinbase and Kraken are starting to feel squeezed. Their core advantage – ease of use and regulatory clarity – still matters, but it may not be enough if execution and pricing are better elsewhere.
Solana’s rise is effectively hollowing out that middle layer of the market.
The bigger picture is that trading is becoming more fluid. Instead of choosing between centralized or decentralized, users are moving between both depending on what they need.
That’s a very different market from just a couple of years ago – and if the current trend holds, the shift toward high-speed, on-chain trading isn’t likely to slow down anytime soon.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
