Solana (SOL) experienced a significant decline in trading activity during the second quarter, as reported by Messari on August 15. The total application revenue on the network dropped by 44.2% to $576.4 million, reflecting a decrease in memecoin speculation that drove high trading volumes in the previous quarter. Average daily spot decentralized exchange (DEX) volume and perpetual trading volumes also saw declines of 45.4% and 28.5% respectively, as market participants scaled back on speculative activity.
Despite the decrease in speculative trading, Solana’s core infrastructure metrics showed resilience and strength in various dimensions. The total value locked (TVL) in DeFi protocols on the network grew by 30.4% to $8.6 billion, solidifying Solana’s position as the second-largest network by TVL. The App Revenue Capture Ratio increased to 211.6%, indicating that applications captured $211.60 in revenue for every $100 spent in transaction fees.
Liquid staking penetration rose to 12.2% of SOL supply, enabling expanded DeFi applications built on yield-bearing SOL. The total staked value also increased by 25.2% to $60 billion, with validator decentralization improving as the Nakamoto coefficient reached 21, measuring blockchain decentralization.
Anza announced the Alpenglow consensus protocol redesign aiming for sub-150 millisecond finality, a significant improvement over the current 12.8-second confirmation times. The upgrade eliminates vote transaction fees and streamlines client operations for smaller validators.
Institutional adoption of Solana accelerated with the SEC approving Rex Osprey’s Solana Staking ETF (SSK) on June 27, the first U.S.-approved staking crypto exchange-traded fund. Additionally, nine other firms have filed applications to launch spot Solana ETFs, with approval decisions expected by October 2025.
Solana’s market capitalization grew by 29.8% to $82.8 billion, maintaining its position as the sixth-largest cryptocurrency. The report concluded that Solana demonstrated its ability to sustain infrastructure development and institutional interest regardless of speculative trading cycles.
Overall, Solana’s network fundamentals remain strong, showcasing its potential for continued growth and adoption in the cryptocurrency space.