Solana’s $9.17 Billion DeFi Boom Conceals a Stablecoin Reserve Poised for Action
The Solana ecosystem is experiencing a resurgence, as key indicators reveal a notable increase in network activity, capital effectiveness, and trading volumes that have surged since early April.
The total value locked (TVL) has reached $9.17 billion, marking a rise of over 20% in just one month, and the overall stablecoin supply has exceeded $11.4 billion. This contrast between the amount sitting in stablecoins and funds allocated to various protocols suggests a liquidity-rich environment, indicating potential for Solana’s upward movement should market sentiment remain positive.
Currently, the stablecoin-to-TVL ratio is 1.24; for every dollar invested in decentralized finance (DeFi) on Solana, there is $1.24 in stablecoins remaining unutilized. This level of capital overcollateralization provides users with a significant reserve to diversify, engage in liquidity provision, or shift toward higher-yield opportunities. With USDC accounting for 73.26% of the stablecoin market, it highlights a strong reliance on a single issuer, which could pose liquidity risks for the network.
The rebound in DeFi engagement is evident across various protocols within Solana. Jito leads with a TVL of $3.09 billion, while Jupiter, Kamino, and Raydium follow closely with $2.57 billion, $2.46 billion, and $1.98 billion respectively. Notably, Raydium has experienced an impressive 60.71% increase in TVL over the last month, significantly outpacing its counterparts and demonstrating a renewed interest in on-chain order-book trading.
Among the top six protocols, four are primarily focused on staking: Jito, Kamino, Marinade, and Sanctum, collectively controlling over $9.23 billion, which represents about 53% of Solana’s DeFi liquidity.
| Rank | Protocol | TVL | 1-month Change | Mcap/TVL | Fees (30d) | Revenue (30d) |
|---|---|---|---|---|---|---|
| 1 | Jito | $3.09 billion | +25.62% | 0.22 | $74.46 million | $2.62 million |
| 2 | Jupiter | $2.57 billion | +18.46% | 0.59 | $29.32 million | $7.80 million |
| 3 | Kamino | $2.46 billion | +13.40% | 0.05 | $8.53 million | $2.18 million |
| 4 | Raydium | $1.98 billion | +60.71% | 0.48 | $43.13 million | $9.84 million |
| 5 | Sanctum | $1.85 billion | +30.87% | 0.01 | $8.91 million | $617,630 |
| 6 | Marinade | $1.83 billion | +43.47% | 0.03 | $10.50 million | $677,793 |
| 7 | Binance Staked SOL | $1.45 billion | +21.90% | N/A | N/A | N/A |
| 8 | Drift | $1.10 billion | +16.28% | 0.18 | $1.36 million | $1.08 million |
| 9 | Meteora | $942.89 million | +25.97% | N/A | $122.65 million | N/A |
| 10 | Orca | $334.62 million | +23.44% | 0.47 | $16.51 million | $1.98 million |
Table displaying the ten largest protocols on Solana based on TVL as of May 21, 2025.
Solana continues to rank as one of the most actively used blockchains in the cryptocurrency market. On May 21, the platform recorded 4.61 million daily active addresses and 68.39 million transactions, indicative of a robust user base. Each address averaged more than 14 transactions daily, reflecting high engagement among users.
The total chain fees reached $1.73 million within the same 24-hour timeframe, though only $153,937 of this was converted into protocol revenue. This differential underscores Solana’s advantage of low costs at its foundational level. Nonetheless, value realization is not neglected; it takes place primarily at the application layer, with app-level revenue hitting $4.92 million that day, significantly outpacing the chain-level income and highlighting where monetization is increasingly happening.
Decentralized exchange (DEX) activity continues to dominate trading patterns. Spot DEXs on Solana achieved a 24-hour trading volume of $3.09 billion, while perpetual contracts totaled only $952.79 million. Over a week, spot DEX volumes tallied up to $23.79 billion, contrasting sharply with the $6.07 billion for perpetuals, indicating a strong preference for spot trading among Solana users or at least in favor of on-chain executions for their trades. DEX transactions now represent 13.51% of the total SOL spot volume globally, reflecting a growing presence within the broader market.
Additionally, protocol-level performance metrics indicate that the ecosystem is thriving. Jito generated $74.46 million in fees over the past month, followed by Raydium with $43.13 million, while Meteora reported an impressive $122.65 million, although revenue details were not available for this latter protocol. Jupiter accumulated $29.32 million in fees, successfully converting $7.8 million into revenue. These figures validate that protocol utilization is expanding in terms of liquidity and is effectively producing cash flow.
SOL has bounced back, having recently risen above $170. This signifies a 22% increase month-over-month, although it still remains approximately 13% lower than its value at the beginning of the year. Data from spot exchanges indicate that the average daily trading volume for SOL in May hovered around 3.40 million SOL, or roughly $570 million, indicating a modest recovery in interest.
On a structural level, Solana’s foundational elements continue to hold strong. The total investment in Solana-native initiatives has increased to $315.76 million, with an additional $49.50 billion bridged from external blockchains. The realized volatility of SOL has decreased to 48% from 62% at the start of Q1, suggesting a period of stability or possible accumulation.
Despite a 3.79% dip in stablecoin reserves over the past week, likely as a result of short-term risk management strategies, the overall trend remains optimistic. Net inflows into Solana-related DeFi projects in the previous month totaled around $1.5 billion, with liquid staking strategies capturing the majority of these investments. This influx, coupled with increased user engagement, reinforces the narrative of the chain regaining its competitive stance following a challenging early part of the year.
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