Ethereum Layer-2 networks are actively capturing decentralized exchange market share following cost reductions from data blob mechanisms. Against this pressure, Solana’s native token recovered to $72 on Friday, June 26. The price bounce from earlier lows of $64 was driven by $113 million in 24-hour tokenized stock volume routed through the Jupiter Aggregator.
Despite the pricing recovery, underlying capital metrics contracted. Solana recorded an 11 percent TVL decline over the past month.
Key Details
- Decentralized exchange volumes on the network fell to $10 billion per week, dropping from $30 billion in early February.
- Key protocols Kamino and Raydium experienced Total Value Locked drawdowns of 19 percent and 17 percent, respectively.
- The tokenization platform xStocks recorded 31 percent positive growth during the same period.
- Binance Staked SOL saw a 20 percent decline in locked value.
Aggregate decentralized exchange activity on the network contracted to $55.5 billion. This marks the lowest recorded activity level since September 2024. The automated market-making pools for the newly popular tokenized stocks suffer from thin liquidity. Industry analysts report this leaves the network heavily dependent on platforms like Pump.fun and vulnerable to competition from chains like Hyperliquid.
Core profitability remains intact despite the volume contraction. The network currently hosts 13 decentralized applications generating over $1 million in 30-day revenue. This outpaces Ethereum, which hosts 11, and Base, which hosts 4 high-earning protocols.
How Ethereum Layer-2s Are Siphoning Decentralized Liquidity
Data blob mechanisms implemented on Ethereum lowered transaction costs for auxiliary networks. This efficiency change allowed Layer-2 ecosystems like Base, Arbitrum, and Polygon to actively challenge Solana for TVL and decentralized market share.
Total decentralized exchange market share for these Layer-2 networks increased from 33 percent earlier in the year to 42 percent. The structural shift indicates active liquidity migration away from the Solana ecosystem toward Ethereum’s scaled alternatives.