Best Decentralized Exchanges (DEX) on Solana

Best DEXs on Solana

As users, we enjoy Solana’s decentralized exchanges for their lightning-fast transaction speeds and low fees. The recent surge in meme coin trading has made these DEXs even more popular, but with so many options available, choosing the best platform can still be challenging.

In our comprehensive review of over 15 DeFi protocols on Solana, we analyzed key factors such as asset liquidity (TVL), trading volume (daily average), fee structures, support for meme coins, wallet compatibility (Phantom, Solflare), yields for liquidity providers, and smart contracts security.

Below, you’ll find a quick comparison of the top 5 Solana DEXs based on these criteria:

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1. Jupiter

Jupiter is the most complete decentralized exchange on Solana, offering a wide range of tools beyond simple swaps. Users can exchange tokens, trade perpetuals with up to 100x leverage, set a Dollar Cost Averaging (DCA) strategy, or automate with trading bots.

Essentially, Jupiter acts as a DEX aggregator by pulling liquidity and pricing data from all other Solana exchanges to provide the best rates for users. Additionally, Jupiter offers cheaper cross-chain bridging using Chainlink’s CCTP and Albridge and several fiat onramp options.

Recently, the platform also added the LFG community-driven token launchpad and a new mobile app for easy access to all of Jupiter's tools.

• Average Daily Volume: $430 million.
• Protocol Fees: 0% for swaps, 0.1% - 0.2% for other tools.
• Available Pairs: 1,286.
• Total Value Locked: $825 million.

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2. Raydium

If Solana owes its impressive monthly trading volume to one exchange, it’s Raydium. The power tandem between Raydium DEX and the token generator Pump.fun has collectively launched over 1 million tokens (mainly meme coins) in just the last 90 days.

Raydium is also notable for offering the deepest liquidity among Solana’s DEXs, with a TVL-to-volume ratio of 0.81 and the highest net volume among its peers. For liquidity providers, Raydium’s pools offer attractive APYs between 20-30%, thanks to the platform’s massive volume.

Additionally, Raydium frequently partners with new projects, offering yield farming incentives and token launches that continue to attract liquidity.

• Average Daily Volume: $466 million.
• Protocol Fees: 0.25% for AMM pools, up to 2% for concetrated ones.
• Available Pairs: 7,183.
• Total Value Locked: $1.88 billion.

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3. Orca

Orca remains Solana’s decentralized exchange with the highest cumulative trading volume, maintaining a $5 million lead over Raydium since their February 2021 launch. Endorsements from Chris Burniske and Ansem have further boosted Orca’s credibility.

Orca’s standout feature is its ultra-low fees, making it the most cost-effective DEX in Solana. Its beginner-friendly interface, particularly after the recent V2 upgrade, has solidified its position as the go-to platform for newer users.

The platforms also has strong partnerships with other Solana protocols like the lending giant Kamino and the Layer 2 network, Eclipse.

• Average Daily Volume: $444 million.
• Protocol Fees: 0% to create positions in pools.
• Available Pairs: 869.
• Total Value Locked: $308 million.

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4. DRIFT

The Solana DEX with the most unconventional approach is DRIFT, particularly after launching BET, a decentralized prediction market akin to Polymarket. BET has attracted 2,700 bettors and generated $29 million in volume, although this volume may decline after the 2024 US elections.

Beyond the prediction market, DRIFT offers 40 perpetual markets with up to 20x leverage and 20 spot markets. One of DRIFT’s standout features is its Just-In-Time Auction mechanism, designed to optimize liquidity during volatile market conditions, ensuring efficient execution of trades.

DRIFT’s innovative auction mechanism and diverse market offerings position it as a highly adaptable platform for high-risk traders.

• Average Daily Volume: $7.7 million.
• Protocol Fees: -0.02% (rebate) maker and 0.05% taker for spot swaps.
• Available Pairs: 60.
• Total Value Locked: $0.

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5. Lifinity

Lifinity presents a unique DEX model on Solana, utilizing its Proactive Market Maker (PMM) with a focus on concentrated liquidity. By harnessing high-fidelity market data from Pyth for pricing, Lifinity achieves great capital efficiency and cuts down the risks of impermanent loss.

Other Lifinity features include its efficient concentrated and lazy liquidity provision strategies, reducing frequent adjustments and primarily using an oracle for pricing. Its advanced tokenomics implements a versatile veToken model that dynamically manages fees and liquidity.

As a bonus, Lifinity also has an NFT collection called Flares, comprised of 10,000 animated non-fungible tokens.

• Average Daily Volume: $88 million.
• Protocol Fees: About 0.16%.
• Available Pairs: 25.
• Total Value Locked: $0.18 million.

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What is a Solana DEX?

A Solana decentralized exchange is a platform built on the Solana blockchain, allowing for direct crypto trades without the need for intermediaries. These exchanges support Solana’s SPL token standard, ensuring smooth integration with the broader Solana ecosystem.

Users retain full control over their assets and private keys, maintaining self-custody at all times, which enhances security compared to centralized exchanges. Additionally, Solana DEXs do not require KYC (know your customer) processes, allowing for fully anonymous trading.

Most Solana DEXs utilize an Automated Market Maker (AMM) model, where liquidity pools enable trading instead of traditional order books. However, Solana has expanded beyond AMMs to include perpetuals, prediction markets, aggregators, and potentially crypto options exchanges in the near future.

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Solana DEX Trading Statistics

Solana currently leads the decentralized exchange sector in terms of trading volume, surpassing Ethereum and other competitors. Here’s a breakdown of key statistics:

• Volume Leadership: Solana takes 34.28% of the total DEX market volume, ahead of Ethereum, Base and Binance Smart Chain.
• Total Value Locked : Solana’s DEXs have a TVL of $2.32 billion, which, while lower than Ethereum’s, shows its efficiency in driving high trade volumes from less liquidity.
• Top DEXs: Raydium leads the pack, accounting for 63.08% of Solana’s total DEX volume, with $9.22 billion traded. Orca is second with $2.84 billion (16.38% share).
• Efficiency: Smaller DEXs like Lifinity and Phoenix boast impressive volume-to-TVL ratios, highlighting their efficient liquidity management.
• Derivatives: Jupiter ranks second among all decentralized perpetuals exchanges with a 15.96% market share, just behind Hyperliquid.

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Solana vs Ethereum DEX Fees

Solana’s low fees, often a fraction of a cent per transaction, are driven by its innovative Sealevel parallel execution model. Unlike Ethereum, which struggles with network congestion and relies on Layer 2 networks, Solana processes multiple smart contracts simultaneously, thanks to its highly efficient parallelization.

In contrast, Ethereum’s fees range between $1 to over $10 per transaction, influenced by its gas fee model and slower transaction speeds. L2s such as Optimism and Arbitrum aim to reduce these fees, but Solana’s inherent network architecture gives it a direct advantage.

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Bottom Line

Solana has experienced a revival, fueled by the rise of its decentralized exchanges and the explosion of trending meme coins on its blockchain.

Raydium and Orca are at the forefront, driving much of the network’s growth, while Jupiter is developing advanced trading tools that could challenge even the best centralized exchanges.

Meanwhile, innovative newcomers like DRIFT and Lifinity are making their mark, ensuring that the Solana DEX ecosystem will only become more competitive and dynamic in the years ahead.