As reported by market research company Messari, Solana (SOL) saw an extraordinary performance during the last quarter of 2024, potentially breaking all previous records for a blockchain in a quarter. Solana’s ascension to the second largest DeFi network is a testament to its impressive growth.
The report points to an astounding 213% quarter-over-quarter increase in Solana’s Chain GDP, which essentially represents the total revenue generated through apps on its network. The figure surged from $268 million in Q3 to a staggering $840 million in Q4, with November contributing a remarkable $367 million to the ecosystem.
Key applications that fueled this revenue boom include Pump.fun, generating $235 million (a 242% QoQ increase), and Photon, which experienced an even more impressive growth of 278%, raking in $140 million. The revenue spike is majorly credited to increased memecoin speculation and a boost in AI-related cryptocurrency launches during the quarter.
Solana’s decentralized finance (DeFi) total value locked (TVL) escalated by 64% QoQ, hitting $8.6 billion and overtaking Tron in November to become the second-largest DeFi network. When expressed in SOL, the DeFi TVL showed a 28% QoQ increase, totaling 46 million SOL. The average daily DEX volume saw a colossal 150% QoQ leap to $3.3 billion, fired up by a resurgence in memecoin trading and the emergence of AI-themed tokens.
In the stablecoin arena, Solana’s market cap expanded by 36% QoQ, reaching $5.1 billion, securing a spot as the fifth-largest stablecoin market. USDC maintained its dominance, with its market cap soaring by 53% to $3.9 billion, claiming a 75% market share.
Network activity metrics revealed a robust engagement, with average daily fee payers surging by 171% QoQ to 5.1 million. The number of new fee payers saw an even more impressive increase, soaring by 189% to 3.8 million. The average daily non-vote transactions also grew by 32%, hitting 81.5 million.
Despite these achievements, staked SOL saw a 5% decrease in Q4, partly due to the FTX estate unlocking its tokens. SOL’s market cap, however, grew by 27% QoQ to $91 billion, with a high point of $120 billion in November.
As of the end of the quarter, SOL ranked sixth in terms of cryptocurrency market caps, lagging behind Bitcoin, Ethereum, Tether’s USDT, XRP, and Binance Coin. Currently, SOL is trading at $199, reflecting a 22% dip over the past two weeks due to macroeconomic challenges impacting risk assets.
