DeFi
Solana DeFi TVL Drops 9% in Q2, But SOL-Denominated TVL Rises
In a detailed look at Solana’s performance in Q2 2024, Messari Solana Status Report highlights a nuanced landscape for the blockchain network. Solana’s DeFi total value locked (TVL) saw a 9% quarter-over-quarter (QoQ) decline to $4.5 billion, ranking it fourth among blockchain networks.
Despite the decline in USD-denominated TVL, there was a notable 26% QoQ increase in SOL-denominated DeFi TVL, suggesting that the decline in USD value may be largely due to token price depreciation rather than capital outflows.
Kamino Lend’s TVL fell 26% QoQ to $942 million after growing in March on the back of a Futures Points preview and the token launch on April 30. At the end of Q2, Kamino’s market cap was $33 million, with 10% of its supply still circulating. MarginFi’s TVL fell 56% QoQ to $341 million due to $200 million in withdrawals in April following internal conflicts and the resignation of CEO Edgar Pavlovsky.
Decentralized exchanges (DEXs) on Solana maintained high levels of activity, with average daily spot DEX volume up 32% QoQ to $1.6 billion, largely driven by memecoin trading. The memecoin meta has seen a shift toward the pump.
Fun, a gamified token launch platform, collected an average of $525,000 in daily fees. Raydium benefited significantly from this, with its average daily volume increasing 77% QoQ to $867 million, increasing its market share to 54%.
Solana stablecoin market cap increases by 8%
During the fourth quarter, Solana’s value in the stablecoin segment increased by 8% to $3.1 billion. Additionally, PayPal expanded its US dollar stablecoin, PYUSD, to Solana, where low transaction fees and high scalability were cited as key drivers. PyUSD recorded a quarter-end market cap of $75 million, but is still awaiting further integrations for broader acceptance.
Solana’s liquid staking rate jumped 22% during the quarter, reaching 6.4% due to increased adoption of liquid staking tokens (LSTs) such as Sanctum. Sanctum’s market share increased 3,700% QoQ, fueled by a stake-weighted QoS incentive system.
On the other hand, Magic Eden regained the top spot as the market leader when Tensor’s share declined. For example, Metaplex introduced remarkable NFT collections and new standards like Core of Metaplex and MPL-404 to provide more liquidity to NFTs.
Related Readings | SEC Closes Investigation into Bitcoin Stacks Developer Hiro Without Further Action