Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at how the Solana blockchain has seen its revenue incease to $365m in 2024, and the reasons behind this.
Solana DApp Revenue Increased 15x to $365m in 2024
The blockchain Solana saw a massive increase in revenue throughout 2024, fuelled by the rise of meme coin decentralised applications (DApps) such as Pump.fun and the continued strength of Solana-based DeFi protocols such as Raydium and Jupiter. The ecosystem saw a huge increase in growth as it reached an all-time high in revenue in November 2024.
The research platform Syndica produced a report which revealed that Solana’s revenue hit $92 million, a 15x increase from $6 million in January, while Solana DApps generated a record $365 million, a 14x jump from $26 million in January.
With decentralised finance (DeFi) continuing as the backbone for Solana’s DApp revenue it showed a total earnings of 83.7%. Wallets contributed a total of 9.6%, while infrastructure, non-fungible tokens (NFT's), and gaming applications produced the remaining 6.5%. A dominant force to emerge on Solana has been the rise of meme coins, which managed to generate a total of $509 million in revenue in 2024. Back in November they managed to earn $183 million, which showed a 300-fold increase from last January. Meme coin applications meanwhile only managed to generate $600,000.
The key players driving Solana’s DApp revenue included Raydium, which is a decentralised exchange (DEX), Photon, a token discovery platform, and Jupiter, a Solana-based DeFi platform. Raydium was crucial in driving spot DEX revenues to record highs as in November they had earnings of $32 million, which was 86% of total spot DEX revenue.
Jupiter, a Solana-based DeFi platform, also managed to reach record revenues in November as it reach the $17 million mark. This was mainly achieved thanks to perpetuals (Perps) trading feature.
Another Solana-based DeFi protocol, Kamino Finance, hit a new all-time high in revenue, reaching $2.9 million. This focuses on lending as its primary revenue source and this contributed to approximately 80% of its total earnings.
Infrastructure providers like Helio also experienced significant growth, with their revenue surging to a new all-time high of $316,000 in November. This represented a 7x increase since the beginning of the year.
Finally, Telegram bots managed to generate $300 million in revenue this year. The bots give user a convenient way to access and trade cryptocurrencies directly within the Telegram messaging app. It has grown in popularity alongside DEX volume, with Telegram bot DEX volume share stabilizing at 4-5% in recent months.
The memecoin launchpad, Pump.fun, which was recently banned in the United Kingdom after a warning from the Financial Conduct Authority, became the first Solana DApp to surpass $100 million in monthly revenue. It brought in $106 million but has been marred with controversy. In late November it faced severe criticism as inappropriate content was shared by users through its livestreaming feature. This included alleged threats and acts of violence. The platform had to indefinitely suspend livestreaming and promise to introduce stricter moderation to prevent similar incidents in the future. As soon as that suspension was introduced Pump.fun’s weekly revenue plummeted 66% from $33.8 million between Nov. 18 and 24 to $11.3 million in the last week of November.
Within the report it also showed the emergence of decentralised physical infrastucture (DePIN) as one of the major growth sectors. Solana-based DePIN protocols like Render, Nosana, Helium, and Hivemapper make use of blockchain technology to provide real-world services, such as decentralised computing and data storage. These protocols have recently seen strong demand, leading to notable revenue growth. The total revenue of Solana-based DePIN projects managed to reach $669,000 in November, which was a major jump from the approximately $150,000 generated in January. Render is currently the largest revenue driver in the DePIN sector.
With the TVL for Solana D'App landscape currently sitting at around $8.9 billion, the NFT sector has not seen the same level of growth. In December 2023 it had sky rocking volumes, when trading volumes for the buying and selling of non-fungible tokens had reached over $20 million per day. While there was a small Q4 rally for the likes of Tensor and Magic Eden, the major traction from the end of 2023 has long been lost. Today the total level of buying and selling trading volumes sits at just $4 million per day.
With the rising Solana D'App revenue, the price of SOL managed to hit a high of $263 last month. It has been moving sideways since and has dropped to around $193 at the time of writing, but many feel it has major potential for growth. It will be important to see if SOL can hold its current level, but a report from Messari predicts explosive growth for Solana throughout 2025. The 3 month chart for SOL from CoinGecko is shown below.
Have a great day.
Peace. CryptoGod-1.
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