Key Takeaways:
- Solana’s DeFi TVL rose to $5.7 billion in Q3 2024, marking a 26% increase in QoQ.
- Kamino led with $1.5 billion in TVL and a 57% QoQ growth, boosted by PYUSD and jupSOL additions.
- Solana’s stablecoin market cap climbed by 23% to $3.8 billion, driven by PayPal’s PYUSD integration.
Solana’s decentralized finance (DeFi) ecosystem saw significant growth in Q3 2024, achieving a total value locked (TVL) of $5.7 billion. This represented a 26% QoQ increase, placing the network as the third-largest network in this metric, surpassing Tron.
According to a recent report by Messari, TVL in SOL rose by 20%, reaching 37 million. Kamino played a pivotal role, leading the way with $1.5 billion in TVL, a 57% rise over the quarter, thanks to new offerings like PYUSD and jupSOL.
Kamino’s innovations in lending included the launch of Kamino Lend V2, which introduced a permissionless market layer and a vault layer. These changes, along with new products like Lending Orderbook and Spot Leverage, are expected to further bolster its market position in Q4.
DEXs and Perpetual Trading Growth
Although the trading volume of Solana’s DEXs did see a slight decline of 10% QoQ, the activities there started to rebound in late September. Its average daily volume coming from DEX has reached $1.7 billion, while most challenges are authored to waning memecoin hype.
Raydium still had the largest market share with 51%, although it witnessed its daily average volume slide 13% to $852 million. Its volumes added $350 million upon the launch of Moonshot, a user-friendly mobile app for trading.
Jupiter remained at the top, with 43% of the total spot DEX volume. New developments included the release of Jupiter Mobile, allowing seamless onboarding through Apple Pay and Google Pay. SolanaFM and Coinhall contributed to the acquisition of the Jupiter ecosystem.
Solana’s Stablecoin Market Boosted by PayPal’s PYUSD
The stablecoin landscape of Solana grew 23% to a market capitalization of $3.8 billion. In May, PayPal’s PYUSD launched on Solana and thereby played an important role. With features such as transfer hooks, programmable transfers were an immediately adoptable feature, and adoption increased significantly.
By the end of Q3, PYUSD’s circulating market capitalization was $331 million, a 341% increase. Meanwhile, USDC continued to dominate and rounded off the high performance for Solana regarding stablecoins.
Circle’s expansion into Web3 services for Solana offers enterprise functionality features, including programmable wallets and fee sponsorships so that developers can integrate seamless, multichain solutions.
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