A recent tweet from Capital Markets highlights a major shift in the Solana ecosystem. For the first time ever, proprietary automated market makers (prop AMMs) have outpaced traditional AMMs in monthly trading volume on Solana's decentralized exchanges (DEXes). This evolution signals exciting changes for traders, especially those diving into meme tokens.

What Are Prop AMMs and Why the Buzz?

If you're new to this, automated market makers (AMMs) are the backbone of DEXes. They let you swap tokens without needing a traditional order book—think of them as smart contracts that provide liquidity pools for trading. Traditional AMMs like Orca, Raydium, and Meteora have been the go-to for years.

But prop AMMs, short for proprietary AMMs, are the new kids on the block. Platforms like HumidiFi and SolFi operate with more optimized, self-managed liquidity strategies. They offer tighter spreads (the difference between buy and sell prices) and less slippage (when your trade price shifts due to market movement). According to sources like Blockworks Research, these prop AMMs are capturing a bigger slice of the pie by focusing on high-volume pairs, such as SOL-USDC.

The chart shared in the tweet from Blockworks Research paints a clear picture:

Looking at the data from October 2024 to September 2025, you can see the red bars (prop AMMs) growing steadily, finally overtaking the blue (traditional AMMs) last month. There's also a small green sliver for orderbook DEXes like Phoenix, but the real story is the prop takeover.

Implications for the Solana Ecosystem

This isn't just a stat—it's a sign that Solana's DeFi scene is maturing fast. Prop AMMs handle about 33-40% of DEX volume now, per recent reports, making trades more efficient for everyone. For blockchain practitioners, this means better tools to navigate volatile markets without getting burned by high fees or poor execution.

How This Ties into Meme Tokens

At Meme Insider, we're all about meme tokens, and Solana is ground zero for many of them. Meme coins thrive on quick, low-cost trades, and prop AMMs could supercharge that. While traditional AMMs like Raydium are still popular for launching new memes, the rise of prop options might mean better liquidity and fewer rugs for established tokens. Imagine swapping your favorite cat-themed coin with minimal slippage— that's the future we're heading toward.

Traders should keep an eye on platforms like HumidiFi, which is already processing hundreds of millions in daily volume. As Solana continues to evolve "at the speed of light," as the tweet puts it, meme token enthusiasts have more reasons to stay plugged in.

For more insights on Solana's meme ecosystem, check out our knowledge base on meme-insider.com. What's your take on this shift? Drop a comment below!