Solana Daily DEX Traders Plunge Over 80% Amid Meme Coin Scams, ETH Competition

Solana's decentralized exchange (DEX) ecosystem has seen a dramatic decline in retail trader activity, with daily active traders dropping from around 4.8 to 8 million earlier this year down to approximately 900,000 to 1.1 million by August 2025. This sharp downturn is largely attributed to the collapse of speculative meme coin activity, high-profile scams involving hacked celebrity Instagram accounts promoting fraudulent tokens, and Ethereum's growing dominance in the DeFi space. The meme coin boom, which initially drove significant retail participation, has given way to pump-and-dump schemes and rug pulls, eroding trust and causing many retail traders to exit the Solana ecosystem. Despite the reduction in trader numbers, Solana's DEX volume remains relatively strong, suggesting a shift toward longer-term holding by remaining participants. Experts warn that Solana's heavy reliance on volatile meme coin activity could hinder sustainable growth unless the platform diversifies to better compete with Ethereum’s broader DeFi offerings. Community sentiment is mixed, with some users hopeful for a price rebound while others express concern over centralization and the network's future viability.