Solana becomes the second-largest chain by DeFi TVL as revenue surges in Q4 2024

Solana has risen to become DeFi TVL’s second-largest blockchain (surpassing Tron), with app revenue increasing by an astonishing 213% quarter over quarter.

According to Messari’s State of Solana Q4 2024 report, Solana has become DeFi TVL’s second-largest blockchain, rising by 64% to $8.6 billion quarter over quarter. Furthermore, its app income increased by 213% quarter over quarter, driven by increased speculative trading in meme-coins and AI tokens. 

Solana’s quick rise up the DeFi rankings has been fuelled by increased activity on decentralised exchanges, lending protocols, and staking platforms. Raydium was one of the major drivers of this development, finishing the quarter as the dominant DeFi protocol on Solana with $2.1 billion in TVL, an 86% increase from the previous quarter. Jupiter Perps, a decentralized perpetual market, had a remarkable 130% QoQ increase in TVL to $1.7 billion.

 Along with its rise in DeFi dominance, Solana experienced a 213% QoQ increase in app revenue (Chain GDP), from $268 million to $840 million in Q4. Pump.fun ($235 million, +242% QoQ), Photon ($140 million, +278% QoQ), and Raydium ($74 million, +268% QoQ) were the top app income generators. The surge in speculative trading on memecoins and AI-related tokens drove much of this revenue growth, with dApps benefiting from higher transaction fees and swap volumes.The conjecture surrounding memecoins and AI tokens has been the primary engine of Solana’s DeFi and revenue growth. 

The return of meme trading following the 2024 US election resulted in enormous infusions into Solana-based enterprises. Tokens like ai16z (AI16z) and fartcoin (FARTCOIN) have garnered significant popularity, resulting in increased trading activity on Solana-based DEXs. Raydium, which led the Solana DEX market with a 56% share and a 242% QoQ rise in daily trading volume ($1.9 billion), played an important role in facilitating these transactions. Pump.fun, a memecoin launchpad, is the fourth-largest DEX on Solana after increasing volume by 228% quarter on quarter. 

Buy and sell crypto in minutes with 0.20% trading fees at Bitdenex  Exchange