In Q1 2025, although revenue from Solana applications recorded impressive growth of 20%, this platform still faced declining pressure as the total value locked (TVL) plummeted by 64% and transaction fees decreased by 24% compared to the previous quarter.
Solana is gradually asserting its position in the crypto market. However, future growth prospects will depend on the ability to respond flexibly to fluctuations and maintain sustainable growth momentum in a fiercely competitive environment.
Q1 revenue reaches 1.2 billion USD: January stands out as a highlight
According to a report from Messari, Solana recorded total revenue from on-chain applications – also known as 'Chain GDP' – reaching 1.2 billion USD in Q1 2025. This figure reflects a growth of 20% compared to the previous quarter (970.5 million USD), marking the highest performing quarter in the last 12 months and showing a strong recovery of the ecosystem after a tumultuous year.
"The Solana economy is booming," the Crypto Banter account commented on X.
In particular, January contributed nearly 60% of the total revenue for the quarter – a sign that the demand for using applications on Solana is rapidly increasing, especially in areas such as meme coins, DEX (decentralized exchanges), and cryptocurrency wallets.
This impressive recovery is driven by several core advantages of Solana – including extremely low transaction fees and superior processing speed, factors that help this blockchain effectively compete with major platforms like Ethereum.
Chain GDP on Solana grows 20% quarter-over-quarter | Source: Messari
Pump.fun leads the Dapp ecosystem
Among the decentralized applications (Dapps) on Solana, Pump.fun stands out as a leader with revenue of 257 million USD, accounting for a large share of the total revenue of the entire ecosystem.
The success of Pump.fun can be explained by the strong attraction of meme coins, especially after the launch of the Trump meme coin on January 17, an event that significantly boosted trading activity on Solana. However, the rapid growth of Pump.fun has also brought negative impacts on the market.
Revenue of Pump.fun | Source: Messari
In second place is the Phantom wallet, with revenue reaching 164 million USD. Phantom has maintained its position as one of the most popular wallets on Solana thanks to its user-friendly interface and seamless integration with many DeFi and NFT applications.
Photon ranks third with revenue of 122 million USD, up 13% compared to the previous quarter, showing stable growth of this application.
DeFi TVL down sharply, but Stablecoin breaks through
Despite impressive growth in revenue from Dapps on Solana, the total value locked (TVL) in DeFi protocols on this platform plummeted by 64%, down to only 6.6 billion USD. This decline may reflect unstable market sentiment, as investors withdraw funds from DeFi protocols and shift towards safer assets, especially stablecoins.
Solana TVL down 22% quarter-over-quarter | Source: Messari
In contrast, the stablecoin market on Solana has witnessed strong growth, with a total value reaching 12.5 billion USD, up 145% from before. Notably, USDC, the leading stablecoin on Solana, recorded a growth of 148% compared to the previous month, reaching 9.7 billion USD, four times that of the largest competitor USDT.
Additionally, USDT also showed impressive performance, achieving growth of 154%, with a value of 2.3 billion USD.
Transaction fees decrease
Another noteworthy point in Messari's report is the sharp decline in transaction fees on Solana. The average transaction fee in Q1 2025 decreased by 24% compared to the previous quarter, now only 0.000189 SOL (equivalent to 0.04 USD).
This low fee is one of the key factors that help Solana maintain its appeal to users and Dapps, especially in areas such as meme coin trading, DeFi, and NFTs.
Q1 2025 is a notable milestone for Solana, as application revenue reached 1.2 billion USD. However, the 64% drop in DeFi TVL is a warning sign, indicating that Solana's ecosystem still faces many challenges. Factors such as unstable market sentiment and fierce competition from other blockchains will directly impact the platform's future.
To maintain growth momentum, Solana needs to continue leveraging its low transaction fees and fast processing speed, while finding ways to address issues in DeFi to attract more investment.
At the time of press, SOL is trading around 161 USD. Technical indicators suggest that this altcoin may enter a consolidation phase near a key support level. However, some traders remain very optimistic about this outlook.
"Solana's monthly chart is forming a large ascending triangle pattern. A breakout will trigger a significant advance," analyst Mags shares.
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Taylor
Disclaimer: This article is for informational purposes only and is not investment advice. Investors should conduct thorough research before making decisions. We are not responsible for your investment decisions.
