The Solana blockchain recorded a steep revenue decline in the second quarter of 2025, even as its decentralized finance ecosystem expanded.
A recent report from Messari shows that while total value locked (TVL) on the network increased, application revenue, referred to as Solana’s “Chain GDP,” fell sharply during the reporting period.
According to the report, Solana’s total application revenue dropped 44.2% quarter-over-quarter, sliding from $1 billion in Q1 to $576.4 million in Q2. The downturn was tied to reduced profit-making across key decentralized applications.
PumpFun, the leading contributor to Solana’s revenue, generated $156.9 million during the three months. However, that figure marked a 43.9% quarterly decline, reflecting weaker memecoin activity.
Meanwhile, Axiom moved in the opposite direction, rising 641.3% to $126.6 million in revenue. Jupiter, a major DeFi aggregator, brought in $66.4 million, though this represented a 15.6% drop from the previous quarter.
Additionally, Phantom wallet also posted $53.5 million, down 65.4%, while Photon slipped 72.4% to $32.5 million.
DeFi TVL rises
Despite the revenue contraction, Solana’s DeFi sector showed resilience during the period.
According to the report, the total value of assets locked (TVL) climbed 30.4% quarter-over-quarter to $8.6 billion, cementing Solana’s position as the second-largest DeFi network after Ethereum.
The rise has continued, with the sector’s TVL climbing to more than $11 billion, according to DeFiLlama data.
Kamino Finance extended its dominance with a 33.9% TVL increase to $2.1 billion, giving it a 25.3% market share. This surge followed the launch of Kamino Lend V2 in May, which attracted more than $200 million in deposits and $80 million in loans within its first three weeks.
Raydium also staged a comeback, overtaking Jupiter to reclaim second place. Raydium’s TVL grew 53.5% to $1.8 billion, while Jupiter expanded 13.2% to $1.6 billion. As a result, Raydium now commands 21.1% of Solana’s market share, compared to Jupiter’s 19.4%.
Trading volume lags
However, the growth in TVL did not translate into higher trading activity.
The average daily spot DEX volume across the Solana ecosystem fell 45.4% in Q2 to $2.5 billion.
Messari attributed the slump to fading memecoin momentum, which had driven record trading activity in the first quarter.
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