The Solana blockchain has experienced a notable decline in revenue during the second quarter of 2025, despite an expansion in its decentralized finance ecosystem. A recent report from Messari revealed that while the total value locked (TVL) on the network saw an increase, application revenue, also known as Solana’s “Chain GDP,” decreased significantly during the reporting period.
According to the report, Solana’s total application revenue dropped by 44.2% quarter-over-quarter, falling from $1 billion in Q1 to $576.4 million in Q2. This decline was attributed to reduced profitability across key decentralized applications. PumpFun, the top contributor to Solana’s revenue, generated $156.9 million during the quarter, marking a 43.9% decrease due to weaker memecoin activity. On the other hand, Axiom saw a 641.3% increase in revenue to $126.6 million, while Jupiter, a major DeFi aggregator, brought in $66.4 million, representing a 15.6% drop from the previous quarter. Additionally, Phantom wallet posted $53.5 million in revenue, down 65.4%, and Photon slipped by 72.4% to $32.5 million.
Despite the revenue contraction, Solana’s DeFi sector demonstrated resilience during the period. The TVL in the sector increased by 30.4% quarter-over-quarter to $8.6 billion, solidifying Solana’s position as the second-largest DeFi network following Ethereum. This growth has continued, with the sector’s TVL surpassing $11 billion, according to DeFiLlama data.
Kamino Finance maintained its dominance with a 33.9% increase in TVL to $2.1 billion, capturing a 25.3% market share. Raydium also made a strong comeback, surpassing Jupiter to reclaim the second spot. Raydium’s TVL grew by 53.5% to $1.8 billion, while Jupiter expanded by 13.2% to $1.6 billion. As a result, Raydium now commands 21.1% of Solana’s market share, compared to Jupiter’s 19.4%.
However, the growth in TVL did not translate into higher trading activity. The average daily spot DEX volume across the Solana ecosystem fell by 45.4% in Q2 to $2.5 billion. This decline was attributed to a decrease in memecoin momentum, which had previously driven record trading activity in the first quarter.
Overall, Solana’s DeFi ecosystem continues to evolve and adapt, showcasing both challenges and opportunities for growth in the rapidly changing landscape of decentralized finance.