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Private DEXs Reshape Solana’s DeFi Landscape

Key Takeaways

• Private decentralized exchanges (DEXs) are gaining significant traction on Solana.
• In Q1 2025, trading volume on Solana DEXs rose by 62% to USD 180 billion.
• Private DEXs like SolFi, Obric v2, and ZeroFi now handle 40–60% of trades routed through Jupiter.
• DeFi Development Corp. purchased USD 23.6 million worth of SOL – a strong signal of institutional confidence.
• Solana shows technical strength, despite short-term overbought signals.

Private DEXs Are Reshaping Solana’s DeFi Landscape

Solana’s decentralized finance (DeFi) ecosystem is undergoing a fundamental transformation. More trading volume is shifting from public to private DEXs. These platforms forgo traditional user interfaces and instead rely on smart contracts and internal liquidity vaults.

According to Pine Analytics, private DEXs such as SolFi, Obric v2, and ZeroFi now process 40 to 60% of trades routed through the aggregator protocol Jupiter. This is a clear indication of their efficiency. They offer tight spreads, reliable execution, and minimize risk through selective token exposure.

Technical Structure: Focus on Efficiency Over Openness

Private DEXs on Solana focus on a small number of liquid token pairs – primarily SOL and stablecoins like USDC and USDT. Platforms such as Obric v2 and ZeroFi rely on stable pricing sources and avoid unnecessary risk. SolFi, on the other hand, caters to more risk-tolerant traders who speculate on new memecoins like Dogwifhat (WIF) or Bonk (BONK).

These DEXs rely exclusively on aggregator-based execution via Jupiter, real-time price discovery through oracles, and vault-driven liquidity. This reduces slippage and increases execution speed – at the cost of transparency and interoperability.

Institutional Investors Are Betting on Solana

Alongside the technical shift, institutional interest in Solana is also rising. DeFi Development Corp. recently acquired 172,000 SOL worth USD 23.6 million, according to a recent filing with the U.S. Securities and Exchange Commission (SEC).

The company plans to raise up to USD 1 billion through securities sales in order to continue accumulating SOL. A report from Coinbase confirms secured funds of USD 42 million. This development could have a long-term impact on Solana’s market structure.

Market Signals: Strong, but Short-Term Overbought

Solana (SOL) is showing technical strength. Its price recently climbed to USD 180.97. The rally is supported by positive signals in the Chaikin Money Flow (CMF) and Relative Strength Index (RSI). However, the RSI is currently in overbought territory, indicating a potential short-term correction.

Still, momentum remains positive. The SOL/ETH pair is holding key support levels, even amid recent ETF-related news surrounding Ethereum. Solana’s undervaluation is increasingly becoming a topic – especially among institutional investors.

Challenges for Private DEXs

While private DEXs offer efficiency, they are also facing criticism. Their lack of transparency and limited protocol compatibility run counter to DeFi’s core principles. Future network upgrades on Solana could make public DEXs more attractive again – especially if they improve in terms of security and execution.

The community is also watching closely who is behind these private DEXs. In a market that increasingly values openness, this could become a decisive factor.

Our Assessment

Solana is entering a pivotal phase. The dominance of private DEXs highlights how much DeFi is evolving on this blockchain. Efficiency and speed are taking precedence – at the expense of transparency and openness.

At the same time, the entry of institutional investors like DeFi Development Corp. signals long-term confidence in the Solana ecosystem. While a short-term technical correction is possible, the fundamental trend remains positive.

As an investor or DeFi user, it’s worth closely monitoring this development – especially if you value platforms with higher execution efficiency or are seeking long-term investment opportunities.

Sources

• Pine Analytics
• Coinbase Research
• TradingView
• SEC Filings (U.S. Securities and Exchange Commission)