Solana Lending Hits $3.6B TVL as Protocols Compete for Dominance

Solana’s decentralized finance ecosystem has reached a significant milestone, with total value locked in its lending markets surging to $3.6 billion as of December 2025, according to a comprehensive report by RedStone. This represents a substantial increase from $2.7 billion a year earlier, driven by intense competition among innovative protocols and the network’s proven technical reliability. The growth narrative is now expanding beyond native DeFi, with institutional capital and tokenized real-world assets emerging as the next major frontier for the high-performance blockchain.

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Perp DEXes Hit $1T Monthly Volume Amid Volatility

Decentralized perpetual exchanges have surpassed $1 trillion in monthly trading volume for the first time, marking a historic milestone for on-chain derivatives. This record-breaking activity was driven by extreme market volatility and sophisticated incentive programs that kept traders engaged through massive liquidations. The October surge demonstrates decentralized infrastructure’s growing capacity to handle institutional-scale trading activity.

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Solana Launches Universal Staking Router to Challenge Ethereum

Nansen and Sanctum have launched a universal liquid staking framework on Solana that aims to standardize the chain’s fragmented $11.6 billion staking market. The new system connects multiple liquid staking tokens into a single routing infrastructure while providing real-time analytics, positioning Solana to compete more effectively with Ethereum’s mature staking ecosystem through higher yields and lower transaction costs.

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Solana Transforms Bitcoin into Dynamic DeFi Asset

Solana’s high-speed blockchain is revolutionizing how Bitcoin is used by transforming it from a static store of value into a dynamic DeFi asset. With 66% of all wrapped Bitcoin traders now on Solana, the network’s low fees and instant settlement are driving massive adoption. This integration unlocks lending, borrowing, and yield opportunities previously unavailable on Bitcoin’s native chain.

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Solana TVL Hits Record $12.1B Amid Institutional Surge

Solana achieved a new all-time high of $12.11 billion in total value locked on September 9, surpassing its previous record and marking a 15% monthly increase. The growth was driven by strong performance across Solana’s largest DeFi protocols, with seven of the eight billion-dollar protocols posting double-digit gains. Jupiter leads with $3.3 billion TVL, followed closely by Jito and Kamino. Concurrently, institutional interest is surging, highlighted by Forward Industries’ $1.6 billion SOL investment and multiple ETF filings, including products from VanEck/Jito and Canary/Marinade. Regulatory developments, particularly the SEC’s August statement that liquid staking tokens are not securities by default, have created favorable conditions for staking-enabled ETF approvals, positioning Solana as a top blockchain ecosystem rivaling Ethereum L2s like Base ($4.8B TVL).

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Solana Developers Target Market Microstructure with ACE

Solana’s developer ecosystem, including key figures like co-founder Anatoly Yakovenko, is prioritizing changes to the network’s market microstructure through Application-Controlled Execution (ACE). ACE allows on-chain applications to dictate transaction execution order, addressing what developers call the ‘single most important problem in Solana today.’ This shift could enable features like sniper protection for token launches and improve overall market efficiency. The roadmap includes short-term updates like Jito’s Block Assembly Marketplace and long-term developments such as Anza’s Alpenglow consensus protocol, aiming to reduce latency and simplify development. The goal is to create a flexible foundation for optimal market structure by 2027, fostering Solana’s growth as a hub for high-liquidity markets.

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WalletConnect’s WCT Token Launches on Solana with Airdrop

WalletConnect’s native token, WCT, is launching on Solana with a 5 million token airdrop targeting active users. The integration marks WalletConnect’s evolution into a multichain protocol, leveraging Solana’s 100M+ monthly active wallets. WCT facilitates staking, governance, and future fee/reward mechanisms, with further chain integrations underway. The expansion follows a 50M WCT airdrop last year and strengthens ties with Solana-based apps like Save, Drift, and Kamino Finance. WalletConnect has processed 278M+ connections since 2018, emphasizing secure cross-ecosystem interoperability.

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Solana’s DeFi Surge: $9.17B TVL & Stablecoin Fuel

Solana’s DeFi ecosystem is witnessing a significant resurgence, with Total Value Locked (TVL) reaching $9.17 billion, up 20% in a month, and stablecoin liquidity surpassing $11.4 billion. The stablecoin-to-TVL ratio of 1.24 indicates ample idle capital ready to fuel further growth. Leading protocols like Jito, Jupiter, and Raydium are driving activity, with Raydium’s TVL surging 60.71% in 30 days. Solana’s daily active addresses and transactions reflect high user engagement, while DEX spot volumes dominate trading. Despite SOL’s price recovery to $170, it remains 13% below its January peak. The ecosystem’s fundamentals are solid, with $315.76 million in native project funding and declining volatility, suggesting consolidation or accumulation.

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