Solana has long been one of the most followed networks in the industry, but 2025 marks its definitive transformation: from “Ethereum killer” to an autonomous, high-performance financial ecosystem now ready for institutional capital markets.
With 400ms finality, average fees of $0.001, 12 consecutive months of 100% uptime, and a record of $35.9B in daily DEX volume, Solana now stands as one of the most robust and high-performing platforms in the entire sector.
And the next phase of its explosive growth is lending.
According to the Solana Lending Markets Report 2025 by Redstone, the network’s money markets are undergoing a structural transformation that paves the way for the first trillion-dollar DeFi ecosystem.
Solana’s lending vertical reached $3.6B in TVL in December 2025, marking a 33% YoY increase compared to $2.7B the previous year.
Unlike Ethereum—dominated by Aave and other established incumbents—on Solana, lending is a hyper-competitive and constantly evolving ecosystem.
The dynamics that set it apart:
- New protocols become leaders in less than six months
- Capital is hypersensitive to returns, swiftly moving towards the most profitable and innovative opportunities
- Builders iterate at a speed typical of Web2, not Web3
The result?
One of the most dynamic lending markets in the history of DeFi.
The expansion of lending reflects a broader trend: Solana is building a comprehensive financial infrastructure.
From High-Frequency Trading to On-Chain Institutional Finance
The stablecoin supply now exceeds $15B, driven by USDC/EURC and USDT.
Blue-chip assets — wSOL, wETH, cbBTC — make Solana an ideal hub for leverage strategies.
2025 marked an institutional turning point:
- Securitize has brought BlackRock, Apollo, and VanEck products to Solana
- Ondo has accelerated the adoption of USDY and OUSG
- Backed Finance has expanded its catalog of tokenized stocks (TSLAx, NVDAx, etc.)
- Ecosystems like Monad and Zcash have started using Solana as a liquidity hub
This mix of crypto-native assets, RWAs, perpetuals, and stablecoin is creating a unified Internet Capital Market, entirely onchain.
Kamino Lend — The Institutional Flagship
With $3.5B in TVL, Kamino is the leading lending protocol on Solana.
v2 (May 2025) introduced:
1. Market Layer (permissionless)
- Instant creation of isolated markets
- Customizable risk parameters
- Zero bad debt since launch
- 14 audits + formal verification
2. Vault Layer (strategic and curated)
Managed by institutional players such as SteakhouseFi, Re7 Capital, MEV Capital, Allez Labs, etc.
Kamino integrates:
- Hastra/PRIME
- Securitize sACRED
- Huma PST
- Maple syrupUSDC (with 90% of Maple deposits routed to Kamino)
👉 It is the preferred protocol for funds seeking transparent, systematic, and institution-grade yield.
Jupiter Lend — The fastest-growing lending protocol in Solana’s history
Launched in August 2025, it reached $1.65B in TVL within a few months.
Its Competitive Advantage:
- Partnership with Fluid
- Architecture with isolated vaults + rehypothecation
Key Features:
- LTV up to 95%
- Liquidation penalties 0.1%
- Liquidation engine that closes all positions in a single transaction
Thanks to the integration within the Jupiter super-app (which controls 95% of DEX routing), Jupiter Lend offers a unique experience: borrow → swap → trade → manage, all in a single interface.
A Fierce Battle for Dominance
In December 2025, Kamino blocked the ability to refinance positions towards Jupiter.
Reason? A dispute over rehypothecation and contagion risk.
- Jupiter: “zero risk”
- Fluid + Kamino: technical dispute
- Jupiter: review → “not 100% zero”
Despite the turmoil, Jupiter recorded $13M in net inflows on December 6th.
👉 On Solana, liquidity is the true arbiter of power.
Drift — The High-Performance Hybrid
With its v3 (December 2025), Drift has achieved:
- 10× execution speed
- 85% of orders executed in <400ms
- Integrated lending through cross-margin
Loopscale — The Pioneering Purchase Order Lender
Data:
- $124.9M TVL
- $40M active loans
- $480M lifetime volume
Specialized in “exotic” collateral:
- Token RWAs come OnRe ONyc
- LP tokens
- JLP/MLP
- LSTs
A model reminiscent of Morpho on EVM — potentially revolutionary for institutional investors.
Save & marginfi — The First Pioneers, Now Put to the Test
- Save (formerly Solend): $300M TVL
- marginfi: advanced architecture, but declining in momentum
👉 On Solana, the winner is the one who runs faster, not the one who arrives first.
Created by Sky Protocol (formerly MakerDAO), Keel is a capital allocator backed by USDS reserves.
Distributes liquidity towards:
- Lending markets
- Stablecoin liquidity
- Tokenized RWAs
It is set to become the institutional heart of liquidity on Solana.
Manages:
- $140M on Solana (Drift + Kamino)
- $1.5B cross-chain
Main Contributions:
1. Delta-neutral on Drift
Combination of JLP + short perps → neutral and institutional yield
2. Curation of Kamino Vaults
- USDC Prime
- SOL Balanced
- CASH Vault
The presence of Gauntlet makes Solana more appealing for ETFs, funds, and regulated allocators.
1. Monolithic Architecture
Everything in a single global state → atomic composability.
2. Predictable and Low Costs
3. Minimized MEV
4. Extreme Technical Performance
With the goal of 150ms, Solana aims to compete with HFT standards.
👉 It’s no surprise that Visa, PayPal, Stripe, Western Union are already building on Solana.
The real innovation 2025:
JitoSOL APY ≈ 7%, double that of Ethereum.
Hedging via CME futures → stable and institutional yield.
Solana now hosts tokenized products such as:
- T-Bills
- Corporate debt
- Private credit
- Tokenized stocks
- Regulated stablecoins
Once onchain, these assets become:
- Collateral
- Liquidity engines
- Yield generators
- Leverage amplifiers
👉 Tokenization is the key to the next trillion.
Solana is no longer proving its worth.
It is asserting it.
With:
- $3.6B in lending TVL
- Fierce competition
- Large-scale RWAs
- Institution-grade architecture
- Increasing liquidity
Solana is establishing itself as the first blockchain capable of supporting true global capital markets, on-chain and institutional.
The future is already under construction.
And Solana is laying the financial tracks for the internet of tomorrow.
Source: https://en.cryptonomist.ch/2025/12/11/solanas-lending-markets-enter-a-new-era-why-on-chain-finance-is-becoming-a-trillion-dollar-reality/
