Solana’s Q4 2024 result could be the best in blockchain history, as reported by Messari, a blockchain and crypto market intelligence provider. Based on the report, Solana experienced unprecedented growth, with total application revenue increasing by 213% from $268 million to $840 million.
November marked a standout month, generating $367 million in revenue for applications on the platform. Interestingly, applications have consistently outperformed the Real Economic Value (REV) on Solana, with $840 million in revenue compared to $819 million in REV for three consecutive quarters.
By the end of the quarter, Solana secured its position as the second-largest blockchain in terms of Total Value Locked (TVL) in decentralized finance (DeFi), reaching an impressive $8.6 billion, which is also a 213% increase from the previous quarter. Anza’s release of Agave V2.0 further bolstered the network, with more than 90% of validators running the updated client. Additionally, the liquid staking rate on Solana rose by 33% to 11.2%, with Sanctum now supporting over 100 liquid-staked tokens.
Is @solana's Q4 the best in blockchain history?
— Messari (@MessariCrypto) February 5, 2025
– Chain GDP +213% to $840M
– TVL hits $8.6B
– DEX volume +150% to $3.3B daily
– Liquid-staked SOL +33% to 11.2%
– 18 Firedancer validators
– Stablecoins +36% to $5.1B
– DePIN, PayFi, and more
Solana Q4 Highlights 👇… https://t.co/WoTIBNjZrW pic.twitter.com/149nv9MMV5
What you'll learn 👉
Primer
Solana, an integrated and open-source blockchain, aims to synchronize global information rapidly. It prioritizes low latency and high throughput, employing innovative features like Proof-of-History (PoH) and a block propagation protocol called Turbine. Since its mainnet launch in March 2020, Solana has undergone several upgrades to enhance its performance and resilience. These advancements have been supported by the non-profit Solana Foundation and various organizations, including Solana Labs and Anza.
In Q4, the Chain GDP on Solana saw remarkable growth. Key applications leading in revenue included Pump.fun, Photon, and Raydium. The surge in revenue is closely tied to increased speculation around meme coins and the launch of AI-related tokens. Notably, Jito, which focuses on optimizing transactions, ranked 10th with a 398% increase in revenue, demonstrating the growing diversity of applications on the network.
App Revenue Capture Ratio (App RCR)
The App Revenue Capture Ratio (RCR) is a crucial metric that indicates how effectively applications on a blockchain capitalize on economic activity. In Solana’s case, the App RCR was 102.5% in Q4, down from 137.3% in Q3. This means that for every $100 spent on fees, applications generated $102.50 in revenue. A higher RCR suggests a vibrant ecosystem where users are actively engaging with applications rather than merely conducting transactions between wallets.
DeFi and DEX
Solana’s DeFi TVL grew by 64% in Q4, totaling $8.6 billion and positioning it firmly as the second-largest network. Raydium led the charge, capturing 24% of the market share with a TVL of $2.1 billion. This growth was primarily driven by speculation around meme and AI coins. Meanwhile, Jupiter Perps recorded the most significant jump in TVL, with a 130% growth
Average daily spot DEX volume surged by 150% to $3.3 billion, largely fueled by the renewed interest in meme coins following the 2024 U.S. elections. Raydium maintained a leading position, while Pump.fun emerged as the fourth-largest DEX on Solana through a remarkable 228% increase in volume.
Stablecoins and Liquid Staking
The stablecoin market cap on Solana increased by 36% to $5.1 billion. USDC remained the dominant stablecoin, holding a 75% market share, while PYUSD experienced a decline. The overall growth in stablecoins reflects the increasing use of Solana for payments and remittance services.
The liquid staking rate on Solana rose to 11.2% as more users opted for yield-bearing SOL. Sanctum and Jito emerged as key players in the liquid staking landscape, with Jito leading in market share.
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Consumer Engagement and Infrastructure Improvements
In the consumer sector, NFT activity showed a slight increase, with daily volumes reaching $2.7 million. Tensor took the lead in NFT trading, while Magic Eden saw a decline. The launch of new products, such as the Seeker phone by Solana Mobile, is expected to broaden the network’s appeal.
Infrastructure developments were pivotal in Q4. The introduction of Agave V2 enhanced transaction scheduling, while the upcoming Firedancer client promises to improve scalability. Innovations like ZK Compression are set to optimize blockchain usage, reinforcing Solana’s commitment to maintaining efficiency.
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Financial Growth
The financial landscape for Solana also thrived, with 21 projects raising a total of $42 million in funding. Institutional interest remained strong, with Visa expanding its USDC settlement pilot on Solana, indicating growing confidence in the network.
Overall, Solana solidified its status as a major player in the blockchain space throughout Q4 2024. The network’s exceptional growth across various sectors, such as DeFi and NFTs, coupled with significant institutional involvement, positions it well for future innovation. The remarkable metrics from this quarter reflect a resilient ecosystem ready for continued expansion and adoption into 2025.
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