# Lunar New Year Impacts Blockchain DEX Volumes
This week (January 25-31), the Decentralized Finance (DeFi) market witnessed a relatively subdued activity. The Lunar New Year holidays led to reduced market participation, coupled with the fading impact of the previous week’s surge in Trump and Melania meme coins on Solana (SOL), resulting in lower trading volumes on major blockchain networks’ decentralized exchanges (DEXs).
## Blockchain DEX Volume Decline Due to Lunar New Year
According to the virtual asset analytics platform DeFiLlama, Solana’s DEX trading volume declined by 63.2% week-over-week, recording $50.78 billion. The major factors behind this reduction include the holiday-induced drop in trading activity and the normalization following Solana’s previous week’s surge. Despite maintaining the top position with a TVL (Total Value Locked) market share of 33.75%, Solana’s TVL experienced a significant decline compared to the prior week.
Similarly, Binance Smart Chain (BSC) and Ethereum also saw their trading volumes drop by 30.44% and 37.18%, respectively, reaching $22.72 billion and $18.28 billion. Base and Arbitrum DEX volumes fell by 26.93% and 48.3%, recording $10.15 billion and $5.12 billion, respectively.
## Bitcoin DEX Volume Rises 30% Amid Holiday
In contrast to the general decline across most blockchain networks, Bitcoin-based DEXs recorded substantial growth, attracting attention. Bitcoin-based DEXs saw a 29.86% increase in trading volume week-over-week, reaching $2.24 million. This growth metric indicates the emerging potential of the Bitcoin DEX ecosystem, with trading volumes consistently rising even during the holiday period.
Most of this trading happened on LN Exchange, a Bitcoin Lightning Network-based DEX. LN Exchange is characterized by fast transaction speeds, low fees, and support for Taproot assets.
LN Exchange actively engaged its users by conducting airdrops and doubling rewards during Lunar New Year, which contributed to the uptick in trading volumes. LN Exchange previously set a record with its BTC-USDT 24-hour trading volume surpassing $60 million at the end of last year.
## The Significance of Bitcoin DEX Market Growth
The increasing trading volume on Bitcoin DEXs signifies the strengthening role of Bitcoin within the decentralized ecosystem. Unlike DEX markets traditionally dominated by Ethereum and Solana, Bitcoin-based DEXs leverage the Lightning Network to offer lower costs and faster processing speeds.
Over the last few months, Bitcoin DEX trading volumes have shown a consistent uptrend. Cumulative data up to January 2025 indicates that market participation and liquidity are steadily expanding.
The Bitcoin DEX market is poised for further growth alongside the expansion of the Lightning Network and Taproot asset ecosystem. Platforms like LN Exchange are expected to play a pivotal role in broadening the utility of the Bitcoin network, promoting a more decentralized trading environment.
