Solana climbs to $185 for the first time in nearly three months.
Solana's DeFi moves to private DEXs, including SolFi, Obric v2, and ZeroFi via Jupiter.
Private DEXs handle 40%-60% of all Jupiter-routed volume, managing internal vaults.
SOL's overbought status on the RSI suggests a possible correction ahead.
Solana's (SOL) price is nursing minor losses, down almost 2% to trade at $180 at the time of writing on Wednesday. Over the past weeks, the meteoric rise changed the trend from bearish to bullish, reflecting 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 centre stage.
Solana's DeFi turns to private DEXs
Solana's DeFi ecosystem has experienced significant adoption, with spot DEX volumes exploding to $180 billion in the first quarter, representing a 62% jump from the fourth quarter of 2024.
Pine Analytics' latest report highlights changing dynamics in the sector, with private DEXs such as SolFi, Obric v2, and ZeroFi taking centre stage. Private DEXs do not have public user interfaces; they operate via smart contracts managing internal vaults. They currently account for between 40% and 60% of Jupiter-routed trading volume, with peaks around 65%.
"Their routing share reflects performance, not branding. These DEXs win routes because they quote tightly, fill reliably, and avoid unnecessary exposure," the Pine Analytics report stated.
Private DEXs primarily quote the most liquid and highly sought-after SOL and USDC/USDT trading pairs. Obric v2 and ZeroFi stand out for their commitment to "high-confidence tokens with reliable pricing data." On the other hand, SolFi is a more aggressive DEX, which often quotes long-tail assets and fresh meme coin launches.
The key features of private DEXs include aggregator-only execution, routed via Jupiter, oracle-based pricing tapping 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 such as dogwifhat (WIF) and Bonk (BONK) driving volumes. The oracle-based pricing model and internal liquidity minimise slippage during volatile pumps, efficiently handling meme coin trading.
However, Solana's planned upgrades could significantly reduce the competitiveness of private DEXs. The upgrades expected this year focus on enhancing public DEX efficiency and composability, ideally leveling the playing field. Moreover, their privacy orientation raises transparency concerns, especially with the DEXs' backers remaining anonymous.
Solana consolidates gains amid a looming correction
Solana's uptrend from the April 7 low of $95 has been unstoppable, reflecting 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 up leg expanded above $180 for the first time in nearly three months, peaking at $185 in the late American session on Tuesday before slashing gains to $179 at the time of writing.
The Moving Average Convergence Divergence (MACD) indicator's bullish divergence from its signal line reinforces Solana's upbeat trend, hinting that the current dip may be short-lived and pointing to the potential for SOL to climb back toward $200.
SOL/USDT daily chart
On the flip side, the Relative Strength Index (RSI) indicator is overbought at 70.67 but shows signs of sliding into neutral territory, which could signal a potential longer than expected cooling-off period or correction for Solana's price in the near 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.
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