Messari’s State of Solana Q2 2024 report reveals a complex picture of the network’s DeFi landscape. While overall total value locked (TVL) in USD terms fell 9% quarter-over-quarter to $4.5 billion, TVL denominated in SOL grew by 26%.
The report, released July 12, highlights several key trends across Solana’s DeFi sector. Lending protocols faced challenges, with market leader Kamino Lend seeing its TVL drop 26% to $942 million. This decline followed a surge in March sparked by a token snapshot announcement. Kamino launched its KMNO token on April 30, airdropping 7.5% of the supply.
Another major lending platform, MarginFi, experienced even steeper TVL losses. Its locked value plummeted 56% to $341 million amid internal disputes and user frustrations over delayed token plans. Despite the turmoil, MarginFi successfully processed a wave of withdrawals and introduced new features like its Liquidity Layer.
Resilient activity in Solana DEXs
On a brighter note, DEXs maintained high activity levels. Average daily spot volume grew 32% to $1.6 billion, driven largely by memecoin trading. The pump.fun platform emerged as a major force, generating over $500,000 in daily fees and sparking a “celebrity memecoin” trend.
Raydium was a key beneficiary of the pump.fun phenomenon. The DEX saw its average daily volume surge 77% to $867 million, capturing 54% market share by quarter’s end. Jupiter remained the top overall trade source but saw its dominance challenged late in the quarter.
Moreover, the stablecoin market experienced an 8% growth, reaching $3.1 billion. Notably, PayPal extended its PYUSD stablecoin to the Solana network. It highlights the platform’s token extension functionalities as a significant contributing factor. Despite PYUSD concluding Q2 with a $75 million market cap on Solana, USDC continued to hold a dominant position, expanding by 5.5% to $2.2 billion.
Related | Litecoin records $2.85B in daily large transactions
