Solana: The Fast-Rising Star of DeFi
According to Messari's Q1 2024 report, Solana's DeFi trading volume continues to surge, with daily spot DEX trading volume increasing by 319% quarter-over-quarter to $1.5 billion. Memecoins like SLERF and BOME have been significant drivers of this growth. Solana has become a hub for retail traders and memecoin enthusiasts, offering ultra-low transaction fees and rapid finality—features that enable DeFi protocols to deliver seamless user experiences unmatched by other blockchain networks.
With SOL's price steadily climbing, Solana's Total Value Locked (TVL) has reached $4.311 billion. Like other public chains, Solana's TVL is primarily fueled by DEXs, LSTs, lending platforms, and perpetual contracts.
Decentralized Exchanges (DEXs)
Decentralized exchanges are typically single-chain, focusing on a specific ecosystem—especially for non-EVM Layer 1 chains like Solana.
| Project | TVL ($B) | Circulating Market Cap ($B) | FDV ($B) | 24h Trading Volume ($B) |
|-------------|----------|-----------------------------|----------|--------------------------|
| Raydium | 0.965 | 0.458 | 0.965 | 0.650 |
| Jupiter | 0.596 | 1.172 | 8.682 | 0.818 |
| Orca | 0.236 | 0.107 | 0.268 | 0.596 |
Raydium
Raydium allows anyone to create a liquidity pool and bootstrap token liquidity. This feature has made it the go-to DEX for launching memecoins on Solana, propelling Raydium to the top of Solana's TVL rankings at $965 million and a 24-hour trading volume of $1.162 billion.
However, with the rise of platforms like Pump.fun (Blinks/Moonshot), which simplify meme launches, Raydium's dominance may wane—especially if these platforms integrate their own DEXs.
Jupiter
Jupiter is a liquidity aggregator that routes trades across Solana's major DEXs and AMMs to find the best prices, minimizing slippage and fees. Beyond spot trading, Jupiter offers a decentralized perpetual futures platform with up to 100x leverage.
Key features:
- JLP (Jupiter Liquidity Provider) tokens: Earn 75% of trading fees, compounded directly into JLP value.
- Meme discovery tool (APE): Scans Orca, Raydium, and Meteora for newly listed tokens with RUG risk screening.
- Points system: Users earn rewards for trading, with an upcoming ASR staking vote incentive program.
👉 Discover how Jupiter is revolutionizing Solana DeFi
Orca
Orca's slogan—“DEX for people, not programs”—reflects its user-centric design. Its Whirlpools feature mimics Uniswap V3’s concentrated liquidity, allowing LPs to maximize capital efficiency by focusing liquidity around the most traded price ranges.
With an FDV of just $268 million, Orca offers significant value compared to overvalued DEXs on other chains.
Liquid Staking (LST)
Solana’s low staking thresholds and affordable SOL prices reduce demand for LSTs, but projects like Jito and Marinade still thrive.
| Project | LST | APY | TVL ($B) | Market Cap ($M) | FDV ($M) |
|-------------|----------|--------|----------|-----------------|----------|
| Jito | JitoSOL | 8.26% | 1.705 | 295 | 2,374 |
| Marinade | mSOL | 7.44% | 1.413 | 27.41 | 101 |
| BlazeStake | bSOL | 7.06% | 0.275 | N/A | 6.83 |
Jito (JTO)
Jito became Solana’s LST leader after Lido’s exit, offering an 8.26% APY from staking rewards and MEV revenue sharing. Its points system rewarded early adopters, with top-tier users earning over $10,000 in JTO airdrops.
Marinade
Marinade’s native staking offers higher APYs, attracting $1.413 billion in TVL. Despite comparable metrics to Jito, its lower visibility suggests growth potential.
👉 Learn about Solana's staking opportunities
Lending
Save (Formerly Solend)
Save is Solana’s leading algorithmic lending protocol, prioritizing speed and low costs. After a 2022 oracle attack caused $1.26 million in bad debt (fully reimbursed), Save adopted Pyth for secure price feeds.
Marginfi, a new lending protocol, is poised to expand Solana’s borrowing options.
Derivatives
Solana’s derivatives landscape includes:
| Project | TVL ($M) | FDV ($M) |
|---------------|----------|----------|
| Drift | 360 | 530 |
| Flash Trade | 14.69 | 550 |
| Zeta Markets | 9.70 | N/A |
Drift
Drift v2 offers pre-market trading, 20x leverage, and collateralized borrowing. Backed by Multicoin Capital, it has processed over $10 billion in volume.
Pyth Network
Solana’s premier oracle, Pyth delivers high-speed, low-latency data feeds critical for DeFi applications like derivatives and lending.
Conclusion
Solana’s DeFi ecosystem is rapidly evolving, with innovations in DEXs, LSTs, lending, and derivatives. Emerging projects are challenging incumbents by prioritizing UX and community engagement.
FAQs
- What makes Solana’s DeFi unique?
Ultra-low fees, fast transactions, and a vibrant memecoin culture. - Is Jupiter a good investment?
Jupiter’s JLP tokens offer compounding yields, but DYOR. - How safe is Solana staking?
LSTs like JitoSOL are non-custodial, but smart contract risks exist.
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