Solana’s second-quarter results painted a mixed picture, with speculation-driven revenues cooling while core fundamentals and institutional traction pointed to deeper resilience.
Data from Messari revealed that total application revenue on the network fell 44% quarter-over-quarter, sliding to $576.4 million from the record-setting $1 billion peak earlier this year. A sharp retreat in memecoin trading played a major role, dragging decentralized exchange volumes down by nearly half to $2.5 billion daily. Perpetual volumes also eased, dipping 28.5% to $879.9 million.
For trading-focused applications, the slowdown translated into lighter revenues, highlighting the impact of market cycles on speculative demand.
DeFi and Staking Growth Paint Different Story
Away from speculative flows, Solana’s on-chain activity showed continued momentum. The network’s total value locked surged 30% to $8.6 billion, keeping Solana securely ahead of Tron as the second-largest DeFi ecosystem.
Other structural improvements included a rise in liquid staking penetration to 12.2% of supply, while the overall staked value climbed 25% to $60 billion. Decentralization advanced as well, with the Nakamoto coefficient inching up to 21.
Developers are also preparing for a leap in performance. Anza introduced “Alpenglow,” a redesigned consensus mechanism that could slash confirmation times from 12.8 seconds to under 150 milliseconds, eliminating vote transaction fees and boosting accessibility for smaller validators.
Institutional Path Opens with ETF
Institutional adoption of Solana continues to expand. In late June, regulators gave the green light to the Rex Osprey Solana Staking ETF (SSK), the first U.S.-approved staking crypto fund. Unlike traditional spot ETFs, SSK delivers exposure via derivatives rather than direct SOL holdings.
Meanwhile, nine firms are vying for approval to launch true spot Solana ETFs, with a decision expected by October 2025.
Market Position Intact
Despite lighter speculative activity, Solana’s network remained busy with nearly 100 million daily transactions. Active fee payers edged down slightly to 3.9 million, but the overall market capitalization jumped nearly 30% to $82.8 billion, securing its place as the sixth-largest cryptocurrency.
The quarter ultimately showcased Solana’s ability to advance technologically and attract institutional demand, even in the absence of frenzied trading activity.
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