Solana Achieves Record-Breaking Growth: Q4 App Revenue Soars to $840M

Market intelligence firm Messari has reported an exceptional fourth-quarter performance for Solana ($SOL ) in 2024, marking a milestone in its growth trajectory. Solana's total application revenue surged by 213% quarter-over-quarter (QoQ), skyrocketing from $268 million in Q3 to an impressive $840 million in Q4. The network's most profitable month was November, generating $367 million in revenue. Standout projects like Pump.fun, which recorded $235 million in earnings (a 242% QoQ increase), and Photon, which saw 278% growth with $140 million in revenue, contributed significantly to this surge.

Solana Becomes the Second-Largest DeFi Network

The decentralized finance (DeFi) ecosystem on Solana experienced substantial expansion, with its total value locked (TVL) climbing 64% QoQ to reach $8.6 billion, surpassing Tron in November to become the second-largest DeFi blockchain. The SOL-denominated TVL also rose 28% QoQ to 46 million $SOL . Fueled by a resurgence in memecoins and the increasing popularity of AI-based tokens, average daily decentralized exchange (DEX) volume surged 150% QoQ to $3.3 billion. Meanwhile, Solana’s stablecoin market capitalization grew 36% QoQ to $5.1 billion, securing its place as the fifth-largest stablecoin network. USDC maintained its dominance, holding a 75% market share, with its total market cap climbing 53% to $3.9 billion.

Increased Network Activity & Market Strength

Solana's network engagement reached new heights, with daily fee-paying users growing 171% QoQ to 5.1 million, while new fee payers surged 189% to 3.8 million. The liquid staking rate increased 33% to 11.2%, with 66% of the eligible SOL supply staked. NFT trading activity also showed resilience, with average daily trading volume rising 7% QoQ to $2.7 million. Tensor led the NFT space with $103 million in total volume (14% growth QoQ),

Despite a 5% decline in staked SOL following the FTX estate’s token liquidation, Solana’s overall market capitalization rose 27% QoQ to $91 billion, peaking at $120 billion in November. At the end of Q4, SOL ranked as the sixth-largest cryptocurrency, trailing Bitcoin ($BTC ), Ethereum (ETH), Tether’s USDT, XRP, and Binance Coin (BNB).

This chart displays the price movement of $SOL
SOL/USDT on Binance. Here's an analysis:
Observations:
Price Growth: $SOL is up by 6.02% in 24 hours, trading at $186.39.Support Level: Strong support near $168.88, where the price rebounded recently.Resistance Level: The immediate resistance is at $190.11, with a stronger resistance around $199.57.Long-Term Trend: The 90-day and 1-year gains of 20.19% and 87.90%, respectively, indicate a solid long-term trend.
Trading Strategy:
For Short-Term Traders:
Entry Point: If SOL breaks above $190 with high volume, it may rally toward $195 or $199.Stop Loss: Place a stop loss below $180 to minimize losses in case of a reversal.Sell Option: If the price faces resistance near $190, consider short trades targeting $180.
For Long-Term Traders:
Accumulate: Use dips around $174–$180 to accumulate $SOL for long-term gains.Target: Expect potential levels above $200 in the coming weeks if bullish momentum sustains.

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