In a detailed overview of Solana’s Q2 2024 performance, Messari’s State of Solana report highlights a nuanced landscape for the blockchain network. Solana’s DeFi Total Value Locked (TVL) experienced a 9% quarter-on-quarter (QoQ) decline to $4.5 billion, positioning it fourth among blockchain networks.
Despite the decline in USD-denominated TVL, there was a notable 26% QoQ increase in DeFi TVL denominated in SOL, suggesting the decline in USD value may be largely due to token price depreciation rather than capital outflows.
Kamino Lend’s TVL dropped 26% QoQ to $942 million after March’s growth from a future points snapshot and token launch on April 30. By Q2’s end, Kamino’s market cap was $33 million, with 10% of its supply in circulation. MarginFi’s TVL fell 56% QoQ to $341 million due to $200 million in April withdrawals following internal disputes and the resignation of leader Edgar Pavlovsky.
Decentralized exchanges (DEXs) on Solana maintained elevated activity levels, with average daily spot DEX volume growing by 32% QoQ to $1.6 billion, largely driven by memecoin trading. The memecoin meta saw a shift towards pump.
Fun, a gamified token launch platform, which collected an average of $525,000 in daily fees. Raydium benefited significantly, with its average daily volume increasing by 77% QoQ to $867 million, boosting its market share to 54%.
Solana’s Stablecoin Market Cap Grows 8%
During the fourth quarter, Solana’s value in the stablecoin segment rose by 8% to $3.1 billion. In addition, PayPal extended its stablecoin for US Dollars, PYUSD, to Solana where low transaction fees and high scalability were cited as main incentives. PyUSD recorded an end of quarter market capitalization of $75 million but is still waiting on more integrations for wider acceptance.
Solana’s liquid staking rate jumped up by 22% during QoQ, reaching 6.4% due to increased adoption of liquid staking tokens (LSTs) such as Sanctum. Sanctum’s market share grew by 3700% QoQ, fuelled 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 dwindled. For instance, Metaplex introduced remarkable NFT collections and new standards like Core of Metaplex and MPL-404 to provide more liquidity in NFTs.
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