KuCoin
Log In
language_currency
Home
Blog
Tips and Tricks
Details
img

Solana On-Chain Volume Hits $1.6T in 2025: Why Users Are Leaving CEXs

2026/01/05 06:54:02
As we look back at 2025 from the start of 2026, Solana’s ascent is undoubtedly the most defining chapter. Rising from a mere 1% market share in 2022 to 12% in 2025, Solana has proven the absolute dominance of "high-performance public chains" in trading scenarios.
Behind this growth lies a profound shift in user behavior. For those seeking a 2026 Solana on-chain investment strategy, understanding the drivers behind this $1.6 trillion momentum is essential.
Custom

I. Why did $1.6 Trillion Choose Solana Over CEXs?

  1. The "First-Mover" Advantage: From CEX Arbitrage to On-Chain Sniping

In 2025, over 80% of emerging tokens—especially Meme coins and AI Agent tokens—chose to launch natively on Solana rather than on traditional centralized exchanges.
  • Early Positioning: By the time an asset is listed on Binance or Coinbase, it has often already seen gains of 10x or even 100x. Using Solana on-chain spot trading tools, users can participate directly during the asset’s "embryonic stage."
  • Ecosystem Synergy: The explosive growth of platforms like letsBONK.fun and PumpSwap has turned Solana into the world's largest incubator for innovative assets.

  1. Extreme Cost Efficiency and UX Evolution

Historically, the barriers to on-chain trading were "slow speeds" and "high fees." However, with the full rollout of the Agave 2.0 upgrade in 2025, Solana achieved average transaction fees below $0.01 and ultra-fast 400ms confirmations.
  • A CEX-Like Experience: Aggregators like Jupiter provide a world-class UI/UX, giving users the feel of a centralized platform while ensuring funds remain in their own Phantom Wallets. This is the technical bedrock for Solana's trading volume surpassing centralized exchanges.

II. Deep Dive: Who is Contributing to this $1.6 Trillion?

According to quarterly reports from Artemis and Messari, Solana’s 2025 trading structure follows a "barbell" distribution:
User Group Core Behavior Contribution to Volume
Retail Investors Participating in Meme manias, using letsBONK.fun/PumpSwap ~45%
Arbitrage Bots & MEV Capturing cross-platform price gaps, high-frequency liquidity strategies ~30%
Institutions & DAOs Large-scale stablecoin transfers via Circle’s institutional rails ~25%
Notably, Solana on-chain stablecoin liquidity saw a qualitative leap in 2025. Circle issued nearly $8 billion in new USDC on Solana, directly deepening DEX liquidity to the point where slippage for large orders (over $1M) is now lower than on many second-tier CEXs.

III. User Perspective: Capturing the Liquidity Dividend in 2026

With Solana on-chain activity continuing to rebound, how should average users adjust their asset allocation?

  1. Monitor "Out-of-Protocol" Revenue Sharing

Following the lead of protocols like Aave that explore revenue sharing, Solana leaders such as Jupiter (JUP) and Raydium (RAY) strengthened their value-capture mechanisms in 2026. Holding ecosystem tokens is no longer just about governance—it is about sharing the fee dividends from this $1.6 trillion economy.

  1. Leverage AI Agents for Optimized Trading

2026 is the inaugural year for AI-driven crypto asset management. Supported by Solana’s high TPS, a new generation of AI trading bots can analyze on-chain hotspots in real-time. For users seeking a high-potential crypto layout for 2026, mastering these AI tools is the key to outperforming the market.

  1. Compliance and Tax Management

With the OECD’s CARF framework now in effect, even trading on transparent chains like Solana requires attention to compliance. We recommend using automated crypto tax tools to ensure your on-chain gains remain compliant with local regulations.

IV. Risk Warning: Shadows Behind the Prosperity

Despite the brilliant data, Solana is not without risks. Throughout 2025, occasional network "jitters" and the "survivor bias" of many Meme coins persisted.
  • Network Stability: While the Firedancer validator client remains a beacon of hope, congestion during extreme volatility remains a "Sword of Damocles" for developers.
  • Liquidity Bubbles: A portion of the $1.6 trillion volume stems from high-frequency algorithmic arbitrage, which may occasionally inflate perceived organic trading intent.

Conclusion: The True Arrival of the DeFi Era

The fact that Solana’s 2025 volume surpassed most CEXs signals that all-in-one decentralized finance solutions are now capable of competing head-to-head with traditional platforms.
 
Top 5 Solana DEXs by Volume (2025 Summary)
DEX Protocol 2025 Est. Cumulative Volume Average Slippage (Majors)
Raydium ~$637.6 Billion 0.01% - 0.05%
Jupiter (Aggregator) ~$480+ Billion* Optimized (Smart Routing)
Orca ~$401.9 Billion 0.02% - 0.08%
Meteora ~$218.5 Billion 0.03% - 0.10%
PumpSwap ~$66.9 Billion 0.10% - 0.50%+