Solana (SOL) experienced a phenomenal fourth quarter of 2024, achieving potentially the best quarter for any blockchain in history, according to a recent report by market intelligence firm Messari. The report highlights a staggering 213% quarter-over-quarter (QoQ) growth in Chain GDP, reaching $840 million in Q4 from $268 million in Q3. November emerged as the most lucrative month, contributing $367 million to the ecosystem.
Key applications driving this revenue surge include Pump.fun, generating $235 million with a 242% QoQ increase, and Photon, seeing a 278% increase to $140 million. This growth is attributed to renewed speculation in memecoins and a surge in AI-related cryptocurrencies launched during this period.
Solana's DeFi TVL grew by 64% QoQ to $8.6 billion, surpassing Tron in November and becoming the second-largest DeFi network. The average daily spot DEX volume also skyrocketed by 150% QoQ to $3.3 billion, fueled by memecoin trading and AI-themed tokens.
Solana's stablecoin market cap grew by 36% QoQ to $5.1 billion, making it the fifth-largest stablecoin market. USDC continued its dominance, with a 53% increase in market cap to $3.9 billion, capturing a 75% market share.
The liquid staking rate, measuring the percentage of liquid-staked SOL, rose by 33% to 11.2%, indicating a significant portion of eligible SOL is now staked. This growth is crucial for a thriving ecosystem built on yield-bearing SOL.
The NFT market saw a modest increase, with average daily volume rising by 7% QoQ to $2.7 million. Tensor dominated this space, achieving $103 million in volume, while Magic Eden experienced a 28% decrease to $68 million.
Network activity metrics reflected robust engagement, with average daily fee payers increasing by 171% QoQ to 5.1 million. The number of new fee payers surged by 189% to 3.8 million. Average daily non-vote transactions rose by 32% to 81.5 million.
Despite these gains, staked SOL experienced a 5% decrease in Q4, attributed to the FTX estate unlocking its tokens. However, SOL's market cap grew by 27% QoQ to $91 billion, peaking at $120 billion in November.
By the end of the quarter, SOL ranked sixth among all cryptocurrencies in market cap, trailing behind Bitcoin (BTC), Ethereum (ETH), Tether's USDT, XRP, and Binance Coin (BNB).
Currently, SOL is trading at $199, down 22% over the last two weeks, amid growing macroeconomic challenges impacting risk assets.