Solana’s On-Chain Metrics Break Records After Its Best Quarter in Blockchain History

Solana, an integrated and open-source blockchain, aims to synchronize global information rapidly. It prioritizes low latency and high throughput

Solana (CRYPTO: SOL) had the best quarter in blockchain history, according to a report by Messari.

Total application revenue increased by 213% from $268 million to $840 million. In November alone, applications generated $367 million in revenue.

Applications have now outperformed Real Economic Value (REV) for three consecutive quarters, with $840 million in revenue compared to $819 million in REV for the period.

Solana also became 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.

The liquid staking rate on Solana rose by 33% to reach 11.2%, with Sanctum now supporting over 100 liquid-staked tokens.

Solana, an integrated and open-source blockchain, synchronizes 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 are supported by the non-profit Solana Foundation and various organizations, including Solana Labs and Anza.

In Q4, the Chain Gross Domestic Product (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.

The App Revenue Capture Ratio (RCR) 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.

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.

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.

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.

In the financial landscape, 21 projects raised a total of $42 million in funding. Visa expanded its USDC settlement pilot on Solana, indicating growing institutional confidence in the network.