In the first quarter of 2025, the Solana blockchain displayed mixed results, with its applications increasing revenue while the overall value locked in DeFi projects sharply decreased.
Why Chain GDP Matters
Chain GDP is a way of measuring all the income generated by apps on the Solana blockchain. In Q1, this figure increased by 20%, reaching $1.2 billion. January was particularly strong, with apps earning nearly $700 million, driven by new tokens such as TRUMP and MELANIA.
Analyzing Application Revenue Capture Ratio
The Application Revenue Capture Ratio (App RCR) indicates how much revenue apps are earning compared to the Real Economic Value (REV) on the network. In Q1, App RCR rose from 117.6% to 142.8%, showing that apps have become more effective at converting user activity into real earnings.
Dramatic Drop in DeFi TVL
However, the total value locked (TVL) in Solana's DeFi projects fell dramatically by 64%, dropping from $18.3 billion to $6.6 billion. This decline signals concerns about user trust in DeFi projects on Solana.
The results from Q1 2025 illustrate the dual nature of Solana: applications show revenue growth, while the sharp decline in DeFi TVL raises questions about investor and user confidence.
