Prop AMMs, the aggregator wars and Solana’s REV

A rangebound market shows signs of strength after recent lows, with BTC, ETH, and SOL all rallying. L2s have performed particularly well, but ETF flows suggest a mixed sentiment in the market. Notably, SOL ETFs have seen positive inflows, a trend likely to continue with the pending approval of SOL ETFs under the '33 Act. However, Solana's network fundamentals are under pressure, with decreased DEX volumes and revenue. Prop AMMs have emerged as dominant players in the Solana ecosystem, with HumidiFi capturing nearly 50% of SOL-stablecoin volumes. This month marks the first time prop AMMs will surpass traditional AMMs in DEX volume. Competition among aggregators is heating up, with DFlow and Titan gaining significant volume. Innovations like DFlow's Just-in-Time Routing are helping to optimize transactions, adapting to price changes in real-time. Despite the rise of prop AMMs, Solana’s revenue (REV) has dropped significantly, signaling potential challenges ahead as market dynamics evolve.

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