The Solana blockchain experienced a significant drop in revenue during the second quarter of 2025, even as its decentralized finance ecosystem continued to grow.
A recent report from Messari indicates that while the total value locked (TVL) in the network increased, application revenue—termed Solana’s “Chain GDP”—declined sharply during the analysis period.
According to the report, Solana’s total application revenue fell by 44.2% quarter-over-quarter, decreasing from $1 billion in Q1 to $576.4 million in Q2. This decline was linked to diminished profitability across major decentralized applications.
PumpFun, the top contributor to Solana’s revenue, generated $156.9 million over the quarter. However, this represented a 43.9% drop from the previous quarter, reflecting lower memecoin activity.
In contrast, Axiom saw remarkable growth, increasing by 641.3% to $126.6 million in revenue. Meanwhile, Jupiter, a key DeFi aggregator, earned $66.4 million, indicating a 15.6% decrease from the preceding quarter.
Additionally, Phantom wallet registered $53.5 million, down 65.4%, while Photon fell 72.4% to $32.5 million.
DeFi TVL increases
Despite the revenue downturn, Solana’s DeFi sector displayed robustness during this timeframe.
As per the report, the total value of assets locked (TVL) rose by 30.4% quarter-over-quarter to $8.6 billion, reinforcing Solana’s status as the second-largest DeFi network following Ethereum.
The upward trend continued, with the sector’s TVL growing to over $11 billion, according to DeFiLlama data.
Kamino Finance strengthened its position with a 33.9% increase in TVL, reaching $2.1 billion, thereby holding a 25.3% market share. This growth followed the launch of Kamino Lend V2 in May, which successfully attracted over $200 million in deposits and $80 million in loans within its first three weeks.
Raydium also made a significant recovery, surpassing Jupiter to reclaim the second position. Raydium’s TVL surged by 53.5% to $1.8 billion, while Jupiter increased by 13.2% to $1.6 billion. Consequently, Raydium now commands 21.1% of Solana’s market share compared to Jupiter’s 19.4%.
Trading volume declines
However, the increase in TVL did not lead to a rise in trading activity.
The average daily spot DEX volume across the Solana ecosystem decreased by 45.4% in Q2 to $2.5 billion.
Messari attributed the decline to the waning momentum of memecoins, which had previously spurred record trading activity in the first quarter.
