Solana’s institutional investments rise 54%.

dApps on the platform secured $173M in Q3. 

Solana’s ecosystem is seeing significant growth. 

Solana’s blockchain ecosystem has seen impressive growth over the past year. Both volumes and fee revenues are reaching new highs, with Solana even overtaking Ethereum. In Q3, this trend of growth has continued. 

Recent reports show that institutional funding in Solana’s ecosystem reached a new high. Notably, Solana’s dApps saw a 54% increase in investments, bringing the figure to a new high. 

Institutional Investments in Solana Surge in Q3

Solana’s ecosystem is attracting significant institutional attention. According to Messari, investments in Solana-based dApps reached $173 million in the third quarter of 2024. This figure represents a notable 54% increase from the previous quarter. Sponsored

Despite the number of funding rounds dropping 37%, institutional investment reached the highest level since Q2 2022. The high value per investment indicates the maturity of the Solana ecosystem and confidence among institutional players. 

The main reasons for the increase in investments are Solana’s growing ecosystem and scalability. While Solana’s transaction fees rose 6% in Q3, due to high memecoin activity, they are still very low compared to other major chains. 

Solana’s TVL Rose 26%

These investments have pushed Solana’s DeFi Total Value Locked (TVL) by 26% in Q3. The figure is now at $5.7 billion, making Solana the third largest DeFi ecosystem, after Ethereum and Tron. The key areas of growth are stablecoins and memecoin. In the last quarter, PayPal’s PYUSD stablecoin was up a remarkable 341%. 

Solana also became the go-to for tokenization. In the last quarter, Solana was the third-largest blockchain by tokenized treasuries, after Ethereum and Stellar. This market reached a valuation of $123 million. Moreover, major players like Franklin Templeton are leveraging Solana to push on-chain funds. At the same time, Société Générale added a new stablecoin to Solana. 

All these figures and developments suggest that Solana’s ecosystem is attracting significant institutional interest. Thanks to its scalable infrastructure and growing ecosystem, institutional investors see it as a go-to for investment. 

On the Flipside

Despite its significant growth, Solana also has challenges. One of these is validator centralization. Despite ongoing efforts to improve geographic distribution, 33% of validators are in the U.S. and the U.K.

Solana also faced technical challenges in the past, including network-wide outages. Recently, its Phantom Wallet, its largest crypto wallet also suffered downtime. 

Why This Matters

The spike in institutional interest highlights Solana’s ability to attract institutional investors. This is key to its further growth and development. 

Read more about Solana’s growth and metrics: Solana Overtakes Ethereum in Economic Value Amid Memecoin Surge

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