Solana's Transformative Year and the Rise of Automated Market Makers

By: Eliza Bennet

In 2025, Solana has shown remarkable growth, evolving from speculative trading to a usage-based model. A key innovation driving this transformation is the rise of Automated Market Makers (AMMs). These are smart contracts that create a decentralized exchange, or DEX, by utilizing a pool of liquidity.

AMMs enable users to trade directly against a smart contract, providing continuous liquidity and pricing based on supply and demand without the need for a traditional order book. This is crucial for Solana’s $1.5 trillion increase in DEX activity, which was supported by innovations in trading ecosystems and tokenized assets. AMMs like those on Solana allow for efficient price discovery and continuous liquidity provision, crucial for Solana's strong performance.

Moreover, the emergence of AI agents in automated trading has introduced new possibilities. These AI agents can execute trades precisely and efficiently based on market conditions, further leveraging the strengths of AMMs.

As Solana gears up for further institutional adoption, its AMM infrastructure places it in an advantageous position within the DeFi sphere. Solana's journey from speculative trade to an integrated financial infrastructure, with AMMs at its core, highlights its resilience and potential future growth. Explore the details of Solana's transformative year here.