Solana (SOL) posted strong revenue growth in Q1 2025, reaching $1.2 billion, up 20% from the previous quarter. However, the network also faced challenges, including a 64% plunge in DeFi total value locked (TVL) and a 24% drop in transaction fees.
This contrast paints a complex picture for Solana’s ecosystem, highlighting both its strengths and ongoing hurdles.
January Drives Revenue Growth
According to Messari, January was the standout month, contributing nearly 60% of the total quarterly revenue. The surge came largely from rising demand for meme coins, decentralized exchanges (DEXs), and crypto wallets.
Solana’s low fees and fast transaction speeds continue to give it an edge over competitors like Ethereum.
Pump.fun Dominates Dapp Revenue
Among Solana’s apps, Pump.fun led with $257 million in revenue. Its rise was fueled by the meme coin trend, especially after the launch of the Trump coin on January 17, which spiked trading volumes.
Close behind was the Phantom wallet, generating $164 million, thanks to its easy user interface and deep integration with DeFi and NFTs.
Photon came in third, earning $122 million, marking a 13% increase from the previous quarter.
DeFi TVL Falls as Stablecoins Surge
Despite Dapp success, Solana’s DeFi TVL dropped 64%, falling to $6.6 billion. This drop likely stems from cautious market sentiment and a shift toward stable assets.
Meanwhile, stablecoins on Solana grew by 145%, reaching $12.5 billion in total value.
- USDC saw a 148% spike, now at $9.7 billion, four times more than USDT.
- USDT also surged 154%, hitting $2.3 billion.
Transaction Fees Continue to Fall
Solana’s average transaction fee fell by 24%, landing at just 0.000189 SOL ($0.04). This affordability continues to attract users and developers, particularly in sectors like DeFi, NFTs, and meme tokens.
What’s Next for Solana?
Despite strong revenue, the DeFi TVL drop signals risk. Solana must address DeFi weaknesses to attract long-term capital. However, its fundamentals—low fees and high speeds—remain key strengths.
At the time of writing, SOL is trading at $161.22. Analysts note that it’s likely entering a consolidation phase, though some see bullish signs forming.
