Solana (SOL) continued to grow in decentralized finance (DeFi) during 2025. By August, the total value locked (TVL) on the network reached $10.33 billion, according to DeFiLlama. Earlier in Q2, Messari reported that Solana’s DeFi TVL had already risen by 30.4% quarter-over-quarter to $8.6 billion.
TVL measures how much capital users have deposited into blockchain applications such as lending protocols, staking services, and decentralized exchanges. A higher TVL often signals trust in a network, since users are willing to lock their funds there for extended periods.
While Solana’s growth was strong, Ethereum still commands the largest share of the DeFi market. As of mid-August, Ethereum’s DeFi TVL stood at $88.09 billion, almost nine times higher than Solana’s. That figure represents more than 60% of all DeFi liquidity across blockchains.
Ethereum’s advantage comes from its early start, deeper liquidity, and a larger user and developer base. Stablecoins such as USDC and USDT also circulate in much higher volumes on Ethereum, giving it stronger trading and lending markets. This scale makes it harder for Solana, or any other competitor, to close the gap quickly.
DEX Volumes and Stablecoin Liquidity Shrink on Solana
Solana’s growth in DeFi deposits was offset by weaker activity in other parts of its ecosystem. Average daily decentralized exchange (DEX) trading volume dropped 45.4% in Q2 to $2.5 billion. Much of the decline was linked to fading memecoin speculation, which had fueled trading earlier in the year.
The stablecoin market also shrank. The combined stablecoin cap on Solana fell 17.4% to $10.3 billion. Circle’s USDC dropped by 25% to $7.2 billion, though it still made up almost 70% of the supply. Tether’s USDT stayed steady at $2.3 billion. Stablecoins are critical for DeFi because they serve as the primary trading and lending asset. A contraction in their supply often signals reduced liquidity across the network.
Additionally, Solana’s non-fungible token (NFT) sector slowed sharply in Q2. Average daily trading volume dropped 46.4% to under $1 million. Although Solana still led in creator royalty payouts, lower trading volume reduced overall activity in this segment.
General network usage remained stable but showed mixed patterns. Daily fee payers slipped 1.4% to 3.9 million, while non-vote transactions rose 4% to 99.1 million. Transaction fees averaged just $0.01, down nearly 60%, which kept Solana affordable for users but also reflected lower demand pressure on block space.
Staking Climbs as Nearly Two-Thirds of SOL Supply is Locked
One positive trend was staking. By the end of Q2, 64.8% of SOL’s circulating supply was staked. Liquid staking, which lets holders earn staking rewards while still being able to use their tokens in DeFi, rose to 12.2%. This not only improved returns for holders but also enhanced the security of the network, since more tokens were locked into validator nodes.
The total staked value on Solana reached $60 billion, highlighting the role staking plays in supporting network stability and attracting long-term participants.
Despite the stronger TVL and staking numbers, Solana’s price has lagged. On August 19, SOL traded at $181.91, down nearly 40% from its yearly high of $293. SOL price is currently holding above a support range between $165 and $167, where the 100-day and 200-day exponential moving averages converge.
The Relative Strength Index (RSI) was at 51, showing neutral momentum. Analysts note that staying above $165 could preserve the uptrend that began in May. A drop below that level may lead to a fall toward $140, while a close above $185 could open a path back to $200.
