According to Delphi Digital Analyst 0X_Arcana, the largest distributed exchange (DEX) aggregators (TVL) of the Solana blockchain, with total locks (TVLs), exceeding $2.5 billion, route almost half of the transaction volume through total locks (AMMs) of more than $2.5 billion.
In a post on July 31st, analysts revealed that unique AMMs such as Solfi, Zerofi and Obric have rapidly gained market share and are closing down in the past six months, raising questions about the increasing centralisation of Solana’s ecosystems.
“Over 40% of all Jupiter trading volumes today are routed through prop AMMs such as Solfi, Zerofi, Obric,” writes 0x_arcana.
Dune Analytics data shows that Solfi handles a quarter of all Jupiter trading volume. Zerofi follows closely at 22%, while Meteora accounts for around 10%.
Jupiter’s volume with AMM
Market efficiency has been improved
Unlike traditional AMMs, which are completely open and transparent on-chain, unique AMMs like Solfi combine private, chain-off-chain price estimations with on-chain trading execution. They personally cite prices, rely on vault-based liquidity, and only perform trades through aggregators without public frontends.
0x_arcana points out that this shift could create a more efficient market, but it is separate from the previous amms transparent and allowed style. Traders appear to be interested in price and execution better than platform transparency. This will help your own AMMs gain market share.
“We were able to see a divergent market structure – a sophisticated venue dominating Jupiter’s volume on one end, and a V2-style pool like Raydium shoots the tail end of the asset,” writes 0x_arcana.
Concentration risk
Historically, AMM provided democratic ways for users to supply liquidity, but struggled with issues such as capital inefficiency. At the same time, their public nature exposed traders and liquidity providers to risks such as frontrunning and maximum extractable values, also known as MEVs.
The proprietary AMM addresses these issues by combining on-chain trade execution with off-chain pricing and private liquidity management. Still, this approach can improve market efficiency, but also raises concerns about centralization as liquidity and order flows are concentrated on a small number of closed source entities.
Jupiter Dao also faced governance challenges and suspended all votes until the end of 2025 after a backlash against the team’s oversized voting power. The impact of the team, which holds 20% of the 10 billion Jup Tokens, sparked concerns about fairness and trust.
Governance is expected to resume in 2026 as Jupiter addresses centralization issues both in chains and governance.