Solana DeFi Total Value Locked Reaches $5.7 Billion in Q3

Solana maintains its position as a leading blockchain, experiencing a 35% rally over the past 60 days and notable on-chain activities. The DeFi Total Value Locked (TVL) reached $5.7 billion in Q3, marking a 26% increase from the previous quarter.

Kamino, a crypto lending service, leads with $1.5 billion in TVL, reflecting a 7% Quarter-on-Quarter growth due to jupSOL and PYUSD integrations. Solana's market cap has risen to $3.8 billion, a 23% improvement, influenced by PayPal's PYUSD.

DeFi Drives Growth for Solana

Solana's DeFi sector dominates with a TVL of $5.7 billion, achieving 26% growth QoQ and becoming the third largest blockchain in this category, surpassing Tron. According to a Messari report, Kamino accounted for $1.5 billion of the total contracts locked, showing a 57% quarterly rise due to recent integrations.

Other contributors include Raydium with $1.1 billion and Jupiter with $749 million. Kamino's performance is attributed to its Kamino Lend V2 launch, which introduces a permissionless vault and market layer. Analysts anticipate further project additions like Spot Leverage and Lending Orderbook.

Solana DEX Activity Declines

DEX activity on Solana decreased by 10% QoQ but showed slight recovery in October, with average daily volume at $1.7 billion, primarily affected by meme coin declines. Raydium holds a 51% market share despite a 13% drop in daily volume to $852 million, which increased by $350 million following the launch of Moonshot, a mobile trading app.

Jupiter retains 43% of the total spot exchange volume, bolstered by new developments including Jupiter Mobile and integrations with Google Pay and Apple Pay.

SOL’s Stablecoins Supported by PYUSD

The Messari report indicates that PayPal’s PYUSD significantly enhances SOL’s stablecoin market, contributing to its $3.8 billion market cap since its May launch. PYUSD features programmable transfers and hooks, increasing its popularity. Additionally, USDC supports Solana's stablecoins, with Circle integrating Web 3.0 services for enhanced enterprise functionalities like fee sponsorship and programmable wallets, facilitating multi-chain solutions.

Featured image from StormGain, chart from TradingView