Solana’s Total Value Locked Soars

Off the back of the Original Trump memecoin, Solana’s total value locked (TVL) has reached $9.77 billion, marking a significant increase from $1.4 billion a year ago. This represents an approximate 600% growth over the 12-month period.

Raydium’s Contribution

Raydium, Solana’s leading DEX, accounts for $2.59 billion of the total TVL, underscoring the rising demand for decentralized trading on the network.

Comparison with Ethereum

Despite this growth, Solana’s TVL remains proportionally smaller than Ethereum’s $68 billion, indicating potential room for further development within the ecosystem.

Network Activity

The growth in TVL aligns with robust network activity metrics. Solana processes approximately 300 million transactions daily, with active addresses surpassing 4 million, reflecting increased user engagement.

Influential Projects

Increased attention from high-profile projects and individuals has driven activity on the chain. Notably, President Trump launched his memecoin on Solana on Jan. 17, which surprised both novice and experienced traders. Since its launch, the TRUMP token has generated over $11 billion in volume on Solana. Currently, Meteora has a 24-hour swap volume of $5.6 billion, with more than $4 billion attributed to TRUMP token pairs.

Daily Transaction Fees

On a record-setting note, Solana’s daily transaction fees reached $33.3 million last Sunday.

Established Projects

Established projects like Pudgy Penguins launching their token PENGU on Solana, coupled with the network’s growing reputation for successful memecoin launches in 2024, have contributed to the ecosystem’s growth.

Conclusion

The sustained growth in TVL signals the maturation of Solana’s DeFi ecosystem. Increasingly, projects opt for Solana for new launches, demonstrating heightened confidence in the network’s infrastructure.

While Solana is still far from challenging Ethereum, the upsurge in TVL highlights potential opportunities for further DeFi development and adoption.

This is an excerpt from The Block’s Data & Insights newsletter. Delve into the statistics driving the industry’s most compelling trends.