- Solana rises to $185 for the first time in almost three months.
- Solana’s DeFi moves to private DEXs, including SolFi, Obric v2, and ZeroFi via Jupiter.
- Private DEXs handle between 40% and 60% of all volume routed by Jupiter, managing internal vaults.
- SOL’s overbought state in the RSI suggests a possible correction ahead.
The price of Solana (SOL) is suffering minor losses, down nearly 2% to trade at $180 at the time of writing on Wednesday. In recent weeks, the meteoric rise changed the trend from bearish to bullish, reflecting a strong risk-on sentiment in the broader crypto market. Meanwhile, Solana’s Decentralized Finance (DeFi) dynamics are undergoing significant adjustments with private decentralized exchanges (DEXs) taking center stage.
Solana’s DeFi Heads to Private DEXs
The Solana DeFi ecosystem has experienced significant adoption, with spot DEX volumes exploding to $180 billion in Q1, representing a 62% increase from Q4 2024.
A recent report highlights the changing dynamics in the sector, with private DEXs like SolFi, Obric v2, and ZeroFi taking center stage. Private DEXs do not have public user interfaces; they operate through smart contracts that manage internal vaults. They currently account for between 40% and 60% of the trading volume routed by Jupiter, with peaks around 65%.
“Their participation in routing reflects performance, not brand. These DEXs win routes because they quote tightly, fill reliably, and avoid unnecessary exposures,” the report stated.
Private DEXs primarily quote the most liquid and sought-after trading pairs, such as SOL and USDC/USDT. Obric v2 and ZeroFi stand out for their commitment to “high-trust tokens with reliable price data.” On the other hand, SolFi is a more aggressive DEX, often quoting long-tail assets and fresh meme coin launches.
Key features of private DEXs include execution only for aggregators, routed through Jupiter, oracle-based pricing using real-time USD feeds instead of token ratios, vault-based liquidity, which manages internal vaults, and selective quoting.
Meme coin trading on private DEXs has gained tremendous traction with assets like dogwifhat (WIF) and Bonk (BONK) driving volumes. The oracle-based pricing model and internal liquidity minimize slippage during volatile surges, efficiently handling meme coin trading.
However, planned Solana upgrades could significantly reduce the competitiveness of private DEXs. The upgrades expected this year focus on improving the efficiency and composability of public DEXs, ideally leveling the playing field. Additionally, their focus on privacy raises transparency concerns, especially with the backers of the DEXs remaining anonymous.
Solana Consolidates Gains Amid Imminent Correction
Solana’s uptrend from the April 7 low of $95 has been unstoppable, reflecting a bullish sentiment in the broader crypto market. Digital assets led by Bitcoin reacted positively to easing trade tensions between the United States (US) and China, in addition to a bilateral trade agreement with the United Kingdom (UK).
SOL’s upward movement expanded above $180 for the first time in nearly three months, reaching a high of $185 in Tuesday’s American session before paring gains to $179 at the time of writing.
The bullish divergence of the Moving Average Convergence/Divergence (MACD) indicator from its signal line reinforces Solana’s optimistic trend, hinting that the current dip may be short-lived and pointing to the potential for SOL to rise back towards $200.
On the other hand, the Relative Strength Index (RSI) indicator is overbought at 70.67 but shows signs of slipping towards neutral territory, which could signal a possible longer-than-expected cooling period or a correction for Solana’s price in the short term.
Tentative support levels lie at the 200-day exponential moving average (EMA) around $162, the 100-day EMA at $154, and the 50-day EMA at $150.
