Solana DeFi Surges as Six Protocols Break the $1 Billion TVL Barrier

For the first time in three years, six DeFi protocols on the Solana blockchain have surpassed the $1 billion threshold in Total Value Locked (TVL), marking a significant milestone for the ecosystem after a turbulent period. The last time Solana experienced this level of TVL growth was in November 2021, during the peak of its DeFi boom, when its TVL reached an all-time high of around $12 billion. However, following the collapse of FTX in late 2022, Solana's TVL plummeted, along with the broader crypto market, hitting lows before gradually recovering.

Total Solana DeFi TVL has also made fresh new highs, reaching $5.70B levels last seen in January 2022, 1000 days ago.

 This resurgence comes as innovative protocols and new liquidity mechanisms have entered the scene, helping to drive Solana's TVL back into the billion-dollar territory. Leading the pack is Jito, a protocol that barely registered on the DeFi radar in 2022 but has now emerged as Solana's top liquid staking protocol, with a staggering $2 billion in TVL.

1. Jito: Solana's Leading Liquid Staking Protocol

Jito has taken the top spot in Solana's DeFi landscape, amassing over $2 billion in TVL, a dramatic increase from $4.4 million in 2022.

Jito was not present during Solana's initial DeFi boom but has rapidly gained traction as the platform's premier liquid staking solution. Recently, Jito ventured into restaking on Solana, a move that has further propelled its growth. The protocol's rise underscores the demand for liquid staking and the increasing confidence in Solana's long-term network security and decentralization.

2. Kamino Finance: Lending Markets Drive Growth

In second place is Kamino Finance, the largest lending market on Solana, with $1.61 billion in TVL, having hit an all-time high.

Launched in 2021, Kamino had a modest $3.58 million in TVL at the start of 2023, marking an impressive growth of over 44,900% in less than a year. The protocol's focus on expanding Solana's lending ecosystem has played a key role in driving its success, as it has become the network's go-to platform for decentralized lending solutions.

5. Raydium: DEX Revival Sparks TVL Surge

Raydium, Solana's leading decentralized exchange (DEX), is the third-largest protocol by TVL with $1.28 billion—a stunning 800% increase from its $128 million TVL in January 2024. 

Once a dominant player during Solana's early DeFi days with over $2 billion in TVL, Raydium saw a steep decline after the FTX collapse, with TVL sinking as low as $24 million by June 2023. The revival came when Pump.fun, a no-code meme token creation platform, used Raydium to bond and list tokens, driving a resurgence in both TVL and trading volume on the DEX.

3. Jupiter's TVL Dominated by Liquidity Provider Pool

Jupiter, the face of Solana's DeFi scene thanks to its popular Jupiter aggregator, holds the fourth position with $1.26 billion in TVL.

The bulk of Jupiter's TVL stems from its Jupiter Liquidity Provider (JLP) Pool, which accounts for $700 million, while $507 million is locked in Jupiter's staked SOL. The JLP pool allows liquidity providers to earn from an index fund of top assets, including SOL, ETH, WBTC, USDC, and USDT, as well as from traders' profits and fees.

4. Marinade Finance: A Veteran Staking Protocol Holds Strong

Marinade Finance, once Solana's leading DeFi protocol, now holds the fifth spot with $1.23 billion in TVL.

Although Marinade has been surpassed by newer protocols, it remains a crucial part of Solana's staking ecosystem, offering both liquid and native staking solutions. Even during the most challenging market conditions, such as the FTX collapse, Marinade consistently maintained a TVL (Total Value Locked) of over $50 million. The protocol's ability to retain and recover its value has made it one of the most resilient in Solana's DeFi landscape.

6. Sanctum: Pioneering Liquid Staking Token Innovation

Rounding out the top six is Sanctum, a liquid staking token (LST) provider that has helped launch validator LSTs for major Solana players like Jupiter and Step Finance and centralized exchanges like Binance and Bybit. Sanctum has reclaimed $1 billion in TVL, a remarkable 4,900% increase from its modest $20 million TVL at the start of 2024.

The protocol's growth has been fueled by its innovative LST technology, which enables any validator on Solana to launch their own liquid staking tokens, further decentralizing staking on the network.

The Road Ahead

The resurgence of these six protocols, each surpassing $1 billion in TVL, is a testament to Solana's ability to bounce back from market downturns and expand its DeFi ecosystem. As liquid staking, lending markets, and decentralized exchanges continue to innovate, Solana's DeFi infrastructure is once again attracting significant capital and attention. This revival mirrors the rapid growth seen in 2021 but also reflects the ecosystem's maturity, with protocols now focusing on sustainable and scalable solutions in the wake of the FTX crash and broader market shifts.