Solana Emerges as the Second-Largest Blockchain in DeFi TVL
Solana has recently made waves in the blockchain space, climbing to become the second-largest blockchain by DeFi Total Value Locked (TVL), surpassing even Tron. The latest data from the State of Solana Q4 2024 report by Messari reveals some impressive growth statistics for the network.
According to the report, Solana’s DeFi TVL has seen a significant 64% quarter-over-quarter increase, reaching $8.6 billion. This surge in TVL can be attributed to the rising activity across decentralized exchanges, lending protocols, and staking platforms on the Solana network.
Key Players Driving Solana’s DeFi Growth
Among the standout performers contributing to Solana’s DeFi dominance are Raydium and Jupiter Perps. Raydium emerged as the leading DeFi protocol on Solana with $2.1 billion in TVL, marking an impressive 86% quarter-over-quarter increase. Jupiter Perps, a decentralized perpetuals exchange, also saw a substantial 130% QoQ jump in TVL, reaching $1.7 billion.
Solana’s App Revenue Surges by 213% Quarter-Over-Quarter
Aside from its DeFi accomplishments, Solana also saw a remarkable 213% quarter-over-quarter surge in app revenue, known as Chain GDP. The network’s app revenue soared from $268 million to $840 million in Q4, with Pump.fun, Photon, and Raydium leading the charge in revenue generation.
The increase in app revenue can be attributed to the booming speculative trading activity in memecoins and AI-related tokens on the Solana network. Projects like ai16z and fartcoin gained significant traction, fueling heightened trading volumes and transaction fees for Solana-based dApps.
The Role of Raydium and Pump.fun in Solana’s Growth
Raydium, with its dominant position in the Solana DEX market and a substantial increase in daily trading volume, played a crucial role in facilitating the trades of memecoins and AI tokens on the network. Pump.fun, a memecoin launchpad, also saw a significant uptick in trading volume, becoming the fourth-largest DEX on Solana.
Overall, Solana’s rapid ascent in DeFi rankings and revenue growth can be attributed to the speculation surrounding memecoins and AI tokens, driving increased activity and value on the network.
