The Solana blockchain experienced a significant drop in revenue in the second quarter of 2025, despite growth in its decentralized finance ecosystem.
A recent report from Messari indicates that while the total value locked (TVL) on the network increased, application revenue, known as Solana’s “Chain GDP,” decreased sharply during the period under review.
According to the report, Solana’s total application revenue declined by 44.2% quarter-over-quarter, decreasing from $1 billion in Q1 to $576.4 million in Q2. This decrease was attributed to reduced profitability across key decentralized applications.
PumpFun, the top contributor to Solana’s revenue, generated $156.9 million in the three months. However, this figure represented a 43.9% decline from the previous quarter, indicating a decrease in memecoin activity.
Meanwhile, Axiom saw a substantial increase of 641.3% to $126.6 million in revenue. Jupiter, a major DeFi aggregator, brought in $66.4 million, although this reflected a 15.6% decrease from the previous quarter.
Additionally, Phantom wallet recorded $53.5 million in revenue, a 65.4% drop, while Photon decreased by 72.4% to $32.5 million.
DeFi TVL on the Rise
Despite the decline in revenue, Solana’s DeFi sector demonstrated resilience during the period.
As per the report, the total value of locked assets (TVL) increased by 30.4% quarter-over-quarter to reach $8.6 billion, solidifying Solana’s position as the second-largest DeFi network after Ethereum.
This growth has continued, with the sector’s TVL surpassing $11 billion, according to DeFiLlama data.
Kamino Finance maintained its lead with a 33.9% increase in TVL to $2.1 billion, capturing a 25.3% market share. This surge followed the launch of Kamino Lend V2 in May, which attracted over $200 million in deposits and $80 million in loans within the initial three weeks.
Raydium also saw a resurgence, surpassing Jupiter to reclaim the second spot. Raydium’s TVL grew by 53.5% to $1.8 billion, while Jupiter expanded by 13.2% to $1.6 billion. Consequently, Raydium now holds 21.1% of Solana’s market share, compared to Jupiter’s 19.4%.
Trading Volume Declines
Despite the increase in TVL, trading activity did not see a corresponding rise.
The average daily spot DEX volume across the Solana ecosystem dropped by 45.4% in Q2 to $2.5 billion.
Messari attributed this decline to the diminishing momentum of memecoins, which had previously driven record trading volumes in the first quarter.
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